Old Used Car Prices Are Spiking Because New Cars Are Too Expensive

News flash: Car prices are insane. The average new car price is close to $50,000, sending buyers into the used market. Unsurprisingly, that’s driving the prices of used cars way up. And it’s not just the lightly used segment that’s skyrocketing. Old used cars are supremely expensive, too.

According to a recent iSeeCars study, the average price of a 10-year-old car is now $12,194. in 2014 it was $7,583—a difference of 60 percent. The increase corresponds with a higher market share for old used cars, which currently sits at 22.7 percent. In short, more people than ever are buying older cars. And they’re paying a premium to get them.

As you can probably guess, the changes began with the COVID-19 pandemic. Market share at the start of 2020 was 15.1 percent, and the average selling price was $9,135. By 2022, the share jumped to 19.2 percent and the price reached $12,549.

“The trend in vehicle prices represents an inescapable tidal wave,” said Karl Brauer, executive analyst at iSeeCars. “When you have new and lightly used car prices spiking, as they have over the past four years, there’s no stopping the wave’s impact on older cars, even for cars produced more than a decade ago.”

Here’s where things get interesting. There’s no denying the popularity of SUVs, but the study—which analyzed 169 million used cars sold over the last 10 years—found that sedans, hatchbacks, and wagons were exceedingly popular. Leading the pack was the Hyundai Sonata, posting a whopping 484.3 percent increase in market share among cars 10 years old or older. The Subaru Legacy, Impreza, and Impreza wagon are also in the top five along with the Mercedes-Benz C-Class. Contrary to what some automakers claim, it seems plenty of buyers still want cars that aren’t giant SUVs.

“While not as popular with new car buyers, older sedans, wagons, and hatchbacks are gaining market share in the used car market,” said Brauer. “Their lower cost, lighter use, and higher fuel efficiency make them an excellent alternative to larger trucks and SUVs that cost more up front and more to fuel and insure.”