Steering Towards Savings: Falling Prices Make Used Cars Ideal for First-Time Buyers

Prices on used cars are dropping, making it a great time for first-time buyers to get great deals. If you visit used car dealers, the first thing you might notice is that used cars have fewer miles, too. In short, prices for used models between one and five years old are down nearly 5% for 2024. However, overall prices remain higher than pre-pandemic levels.

Costs Are Finally Coming Down

In recent years, buyers visited used car dealers only to find prices steadily going up. The average price of a used car is still well above pre-pandemic levels, but the costs compared to the last few years are finally coming down. A new study from iSeeCars shows that the average price of a car between one and five years old is now down by 4.7% from 2023. Unfortunately, this is still 40% more than the average price of a used car in 2019. The good news is that used cars these days have fewer miles on them than before. Essentially, used car buyers are paying less for more.

Some Popular Models See Sizable Price Reductions

If you’re looking at some popular models like the Tesla Model 3, Jeep Grand Cherokee, or the Ram 1500, good news is on the way. These models and many others have gone down significantly in price from 2023. In the case of the Tesla Model 3, the 2024 price is also well down from its 2019 price. For the other two models, the price has decreased by roughly $4,000 from the 2023 price, but it’s still well over the 2019 price.

Other price reductions of at least $2,000 from the 2023 price include the Subaru Crosstrek, Honda Accord, Toyota Corolla, Ford Explorer, Chevrolet Equinox, and the Subaru Outback. The Chevy Equinox’s average price is now $20,942, which is only about $3,000 more than its 2019 price.

More Used Cars Under $20,000 Available

The downward price shift for used cars is also partly due to the increased share of models under $20,000. In 2023, only one such model was available, the Hyundai Elantra. In 2024, the Chevrolet Malibu and Toyota Corolla also had average used prices below $20,000. That makes three budget options for relatively new used cars. Some models have also seen mileage drops, like the Honda Accord, with an average used mileage of around 79,513. However, this is still quite a bit higher than the 2019 average mileage of 41,836.

Prices on Used Cars Still Have Further to Drop

While prices for used cars are starting to come down, both prices and mileage remain higher than pre-pandemic levels. It might take several years yet before we see the used car market resemble anything from 2019. In fact, it might never go back to that point, but at least it appears to be moving in the right direction.

If you’re considering buying a used car, now is definitely a good time to start looking. Prices may go further down, but there’s no time like the present if you’ve been waiting for a price drop.