After reaching record highs last year, used car prices continue to fall according to the latest study from iSeeCars. Through February 2023, overall prices have dropped 4.7 percent since September 2022. Year-over-year, the difference is even greater at 8.7 percent. Over 1.8 million used vehicle sales of models ranging from one to five years old were analyzed for the study.
With the exception of a sharp jump in December, the study shows a decreasing trend over the last six months. The average used-car price was $33,368 in September, compared to $31,815 for February. Last year, the average cost was $34,839. However, the study notes that, despite the decrease, current prices are still higher than they were before the COVID pandemic.
Taking a deeper dive shows significant price reductions for some models. In the last six months, transaction prices for the Tesla Model 3 plunged 21.5 percent. That equates to a decline of $11,302 compared to September 2022, and it leads the field in the top-ten biggest drops since September. The Nissan Leaf is also on the list, down 12 percent to take the third spot. Its combustion-powered sibling, the Nissan Kicks, dropped 13.4 percent for the second-largest decline.
As for year-over-year price drops, Nissan is once again in the mix with the Infiniti QX80 falling 22.3 percent. Its twin, the Nissan Armada, is right behind at 20.3 percent, with the Land Rover Discovery down 19.9 percent. The Tesla Model 3's price is down 19.3 percent, with another Land Rover – this time the Range Rover Velar – down 19.2 percent. Overall, these top-five models have prices that are $10,000 less on average versus February 2022.
Gallery: 2020 Porsche 911 Carrera And Cabriolet
Curiously, while some luxury models show big declines, others are bucking the trend with substantial increases. This is especially true on the shorter six-month scale, led by the Mercedes-Benz S-Class which is up 11.8 percent from last September. That equates to a $9,314 jump, with the average S-Class selling price sitting at $87,981. The GLS-Class is second with an increase of 11.2 percent, and while the Porsche 911 is technically third on this list percentage-wise (up 10.6 percent), the average selling price is a whopping $190,770 – a six-month increase of $18,272. The year-over-year jump for Porsche is even larger, up 13 percent.
"The used car market has fragmented over the past year," said Karl Brauer, executive analyst for iSeeCars. "While prices are still higher than before the pandemic, they have consistently dropped over the past year and at an accelerated rate in the past 6 months."
Full results of the study are available on the iSeeCars website.
