Used Car Inflation Finally Turns Negative. Older Models Will Lead the Market’s Recovery in 2023
Used car prices show the first year-over-year decline since the onset of the COVID-19 pandemic – a major milestone on the car prices’ return to normal
Prices of used cars 4 years and older have fallen by an average of 13% from their peak levels, while 1-3 year old cars have dropped by 8%
However, with more interest rate hikes promised for 2023, price declines continue to be offset by increasing lending costs
Chicago, IL – December 13, 2022 – Used car prices dropped for the fourth consecutive month in November, registering the first year-over-year drop since pre-pandemic. Older used cars showed the most substantial price declines during 2022, and will be the first sector to recover, according to new data and analysis from leading car shopping app CoPilot.
Dropping 2.1% month-over-month to an average listing price of $27,137, pre-owned (4-7 year old) cars are now 13% below their January peak. Similarly, 8-13 year old cars are down 13% from their peak in April, at an average price of $16,601. Throughout 2022, prices of nearly-new (1-3 year old) cars held firmer for longer, but have dropped for five consecutive months, dropping 8% from their peak summer prices, to a November average listing price of $39,987 – which is 1.7% lower than the same month last year.
However, 1-3 year old cars now show the smallest Price Premium percentage, at 33% above normal levels (compared to 34% for 4-7 year old cars and 36% for 8-13 year old vehicles) – indicating that this vehicle age bracket is the closest to returning to normal, pre-COVID levels.
When gas prices first increased in March, used electric vehicles followed suit, skyrocketing by 30% as consumers shied away from gas-guzzling segments like SUVs and trucks. However, as prices at the pump finally started to ease over the summer, the EV market erased most of these gains, with the average listing price falling by 20% to an average of $54,314 as of December.
Hybrid vehicles showed a similar trend, jumping by 20% along with gas prices in the spring. Since they peaked in the summer, however, used hybrid prices have fallen by 12% to an average listing price of $43,574.
Conversely, used SUVs and pickup trucks – priced at 20% and 27% above normal, respectively – are the two segments closest to returning normal levels. Used minivans, now priced 38% above normal, saw the most substantial price declines in 2022, falling by 8% from their peak in March to an average listing price of $24,992 as of December.
Foreign brand prices fell more than domestics in 2022, dropping by 7% from their peak in September to an average price of $24,934, and their Premium fell by a staggering 13% from peak. Domestic and luxury brands also saw substantial drops from their peak pricing levels in April, dropping by 6% and 5%, respectively. Among individual brands, luxury brands saw some of the most significant price declines in 2022, with used Infinitis dropping by 10% to an average listing price of $36,095 and used Teslas falling by 9% to an average of $63,049.
About CoPilot
CoPilot is a leading, data-driven car buying app that provides consumers with an expert partner for the high-consideration purchase process starting with car buying and ownership. The platform combines powerful data backed by human expertise to introduce transparency to the shopping, purchasing and ownership journey. The mobile application takes the time, frustration, and guesswork out of the process, empowering people to easily navigate the risks of shopping for high-value items, and to buy with confidence at the right price and the right time.
CoPilot provides free pricing tools for consumers. Price Pulse makes it easy for car shoppers to check the current market value and Price Premium for any car, track price changes, and compare years and models to choose the right car and know when to buy. For car owners and sellers, Price Pulse calculates the real-time value of their car, using the same data only dealers used to have, allowing consumers to track how much their vehicle has appreciated, so they can decide whether and when to sell, or negotiate the best deal at trade-in or lease-end. For media publishers, CoPilot offers embeddable data tools, allowing journalists and bloggers to integrate interactive charts within their web content, apps, or newsletters, powered by CoPilot’s unique data and analytics.
Media Contact:
Kerry Close
732-609-2644
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