For the most part, new and used car prices have stopped going up. But after three years of inflation, their price is still pretty high, prompting many buyers to consider a model older than they might have in the past.
Before the pandemic, many used car buyers shopped for a three-year-old model. It was “like” new with still fairly low mileage and that new car depreciation was already gone. But since the pandemic, that’s pretty much out the window.
Those three-year-old models now cost what new cars once did. As a result, many car shoppers are looking are cars that are at least 10 years old.
Researchers at iSeeCars analyzed over 169 million used cars sold from January 2014 to June 2024 and found the average price of older cars, defined as used models 10 years old or older, increased by 60.8%, from $7,583 in 2014 to $12,194 today.
“Consumers seeking relief from high vehicle prices are turning to older cars,” said Karl Brauer, iSeeCars’ executive analyst. “But even going back a decade or more isn’t shielding buyers from the massive used car price hikes in recent years, with the average older car now costing more than $12,000.”
The share of older cars was fairly stable from 2014 to 2017 and even dipped between 2018 and 2020. However, the last four years have seen a steady increase in old car share, moving from 15.1% of the market in 2020 to 22.7% this year. This same period saw older used car prices grow by $3,059, from $9,135 to $12,194.
Pros and cons of an older car
If you’re considering a retro purchase, it’s important to remember that there are pros and cons to owning a vehicle that’s more than 10 years old. The biggest pro is the cost to drive it off the lot. It costs less than a three-year-old model but it’s still pricey.
Also, it may cost less for car insurance. Insurance companies know they won’t have to pay quite as much if the vehicle is in an accident, and any way to cut rising insurance costs can be a big help.
But here come the cons: An older car may have more breakdowns and result in costly repairs. In 10 or 12 years, a vehicle may have had two or three owners and you don’t know how they drove the vehicle or how well they maintained it.
A 10-year-old model may have Bluetooth connectivity, but beyond that, it might be lacking today’s latest technology – if that’s important.
Buying a service contract or extended warranty might reduce the possibility of expensive repairs, but make sure you understand what one of these contracts covers and what it doesn’t. ConsumerAffairs researchers have analyzed 55 companies with 41,000 verified reviews and picked the five best.
