Cars and Drivers

Used Car Prices Crumble

Cars and graphs on a blue background.
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24/7 Insights

    • Used car prices began dropping significantly in early 2024. 
    • Prices were at a during the pandemic when a chip shortage led to low vehicle production.
    • There are some surprising vehicles on this list that you might think held better value. 
    • Also: 2 Dividend Legends to Hold Forever

When you consider the car market and its roller-coaster ride over the last four years, it shouldn’t be surprising to learn that the used car market is falling. Unfortunately, this has two immediate ripple effects as car owners can no longer sell their vehicles for prices above what they owe, and customers can now buy used cars much cheaper than they could a few years ago.

According to The Kobeissi Letter on X (formerly Twitter), the used car market has officially popped. The group’s commentary indicates that used car and truck prices are now down far enough off the 2021 peak that we are in uncharted territory. Worst of all, there are no signs or indicators that the prices will stop falling, which could have dangerous ripple effects for years. 

Why Is This Important? 

row of used cars. Rental or automobile sale services
Dmitry Kalinovsky / Shutterstock.com
Used car pricing is a good indicator of how the overall car market performs.

The car market is one of the most closely followed industries on the planet, and 24/7 Wall Street frequently covers it. Whether it’s new and used car sales or the transition to electric vehicles, we cover it all on this website. However, used car pricing is worth covering, particularly because it affects many brands we discuss weekly, such as Ford, GM, Stellantis, Kia, Hyundai, and a dozen others. 

This Is Not 2021

Cars in a row. Used car sales.
Scharfsinn / Shutterstock.com
In 2021, used cars couldn’t be kept on the lot, but today, they are available everywhere.

According to The Kobeissi Letter, the automobile industry is looking at used car and truck prices that have decreased 17.5% since 2021. Their research indicates this is the largest decline in the market over the last 15 years. Worse, there have only been two instances over the last 35 years when prices dropped more: 2004 and 2009, the latter of which was a ripple effect from the housing bubble crash. In 2021, new car pricing averaged $37,000, but in 2024 this number is closer to $50,000. 

Used Car Pricing

Cars in a row. Used car sales.
Scharfsinn / Shutterstock.com
The used car market has dramatically fallen over the last 22 months.

When you look at the used car market, overall pricing has declined for the last 22 months. This means more cars are sitting on the lot, and car dealer profits are dropping, which means they have less money to help create better deals. In June 2024, the auto industry saw wholesale pricing decrease 8.9% yearly to $17,934. 

What’s worse is that EV automakers have taken the most brutal hit, with some vehicle prices dropping by over 40%. Tesla is feeling the heat in a big way as owners of cars like the Tesla Model Y and Tesla Model 3, which once commanded huge trade-in values, are now not even of interest to many dealers as trades. Instead, you must go through a private sale, a dramatic shift from just two years ago. 

Keeping Cars Longer

Lot of used car for sales in stock
Kwangmoozaa / Shutterstock.com
People keeping cars longer significantly affects used car pricing.

One scenario may not be accounted for here but is well worth discussing. This revolves around the idea that the average age of a car on the road in America is 12.6 years old, an all-time high. As people keep their vehicles longer, their value drops, impacting how much they can sell for when used as trade-ins or just sold for cash. In addition, more people are keeping cars beyond 100,000 miles thanks to extended warranties and better build quality that ensures they can last much longer than they have in the past. 

10. Kia Telluride

jetcityimage / iStock Editorial via Getty Images
The Kia Telluride is one of the best-reviewed SUVs on the market.
  • 2021 average price: $39,000
  • 2024 average price: $34,500
  • Price drop: 11.5%

The Kia Telluride is considered one of the best family-friendly SUVs, but this doesn’t mean it’s exempt from falling used car prices. The biggest impact is likely a drop in demand when Kia had a waiting list for the Telluride during the COVID-19 pandemic. When demand stabilized, and volume returned, there was an immediate effect on used car pricing. 

9. Subaru Outback

teddyleung / iStock Editorial via Getty Images
The Subaru Outback is one of the company’s best-selling vehicles.
  • 2021 average price: $32,500
  • 2024 average price: $28,200
  • Price drop: 13.2%

Any excitement Subaru might have had for the Outback’s big refresh in 2020 has undoubtedly worn off. There is no question that while Subaru might have fed ahead of the game in 2020, four years later, the competition has not only caught up with features and interior refinements but surpassed Subaru’s efforts. As a result, used vehicle prices are dropping fast. 

8. Jeep Grand Cherokee

THEPALMER / iStock Unreleased via Getty Images
The Jeep Grand Cherokee has unsurprisingly fallen in used car pricing.
  • 2021 average price: $41,000
  • 2024 average price: $35,500
  • Price drop: 13.4%

It’s hard to say exactly why the Jeep Grand Cherokee has seen such a dramatic price drop, but one consideration is the introduction of the Grand Cherokee L, which made the brand’s two-row models somewhat obsolete. Pressing competition from the Ford Explorer, Hyundai Palisade, and the Kia Telluride has also likely impacted demand for the Grand Cherokee and affected used car prices. 

7. Hyundai Elantra

shaunl / iStock Unreleased via Getty Images
The Hyundai Elantra is a fantastic, budget-friendly compact sedan.
  • 2021 average price: $22,000
  • 2024 average price: $18,800
  • Price drop: 14.5%

One of the smaller compact sedans on the market, the Hyundai Elantra, has long been competing with the Honda Civic. With a redesign in 2021, previous model years saw their prices drop dramatically, but including the N Line and N models has impacted the 2021 and up model years. Hyundai has also focused on going electric, which impacts overall pricing in their lineup. 

6. Nissan Altima

Nissan Altima
Public Domain / Wiki Commons
The Nissan Altima has trouble keeping up with the Toyota Camry and Honda Accord.
  • 2021 average price: $24,500
  • 2024 average price: $21,000
  • Price drop: 14.3%

The Nissan Altima has long been in a precarious market position. While it’s competitive with the Toyota Camry and Honda Accord on paper, it doesn’t have similar sales numbers. There have long been questions of reliability, and there have been very few major updates to the exterior and interior since 2019. Last but not least, Nissan is undoubtedly putting more emphasis on its compact SUV, the Rogue. 

5. Toyota Camry

2022 Toyota Camry
Benespit / Wikimedia Commons
The Toyota Camry has dramatically fallen in price over the last three years.
  • 2021 average price: $27,800
  • 2024 average price: $24,200
  • Price drop: 12.9%

While the Camry has long been one of the best-selling cars in America, its existing body was getting stale. Conversely, the Hyundai Sonata was getting better, often at a smaller price tag, which arguably chewed into Camry sales. In addition, a full exterior refresh in 2024 will undoubtedly impact the overall pricing of previous model years. 

4. Chevrolet Silverado

Chevrolet+Silverado+1500 | 2020 Chevrolet Silverado 1500 High Country, front 10.25.20
2020 Chevrolet Silverado 1500 High Country, front 10.25.20 by Kevauto / BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/)
The Chevrolet Silverado has fallen in price since introducing a refreshed model.
  • 2021 average price: $46,500
  • 2024 average price: $40,200
  • Price drop: 13.5%

In 2021, the Chevrolet Silverado was at the peak of its used car market, but when Chevrolet introduced a refreshed model in 2022, it impacted every previous model year. In addition, you have updated models from the Ram 1500 and the Toyota Tundra, both of which are gunning for Chevrolet’s best-selling spot behind Ford. 

3. Ford F-150

shaunl / iStock Unreleased via Getty Images
The Ford F-150 is still the country’s best-selling pickup truck.
  • 2021 average price: $48,000
  • 2024 average price: $41,500
  • Price drop: 13.5%

While the Ford F-150 has long been the best-selling pickup in America, the introduction of the Ford F-150 Lightning did impact the price of gas model variants. The 2021 chip shortage also had a big impact on gas model pricing, and with this issue resolved, the pricing of the used market for this pickup dropped accordingly. 

2. Honda Civic

JustAnotherCarDesigner via Wikimedia Commons
The Honda Civic remains one of the best-selling cars in America.
  • 2021 average price: $25,500
  • 2024 average price: $22,100
  • Price drop: 13.3%

Introducing a new model in 2022 undoubtedly impacted one of the country’s most popular budget-friendly sedans. This introduction also improved fuel efficiency, which is appealing as long as gas prices remain high. Still, it also impacts the desirability of the used car model. There is also a concern about the shift of consumers looking more toward SUVs. 

1. Toyota Rav4

2020 Toyota Rav4
Public Domain / Wiki Commons
The Toyota Rav4 has fallen the most in used car pricing.
  • 2021 average price: $30,602
  • 2024 average price: $26,935
  • Price drop: 12%

As one of the most popular compact SUVs, the Toyota Rav4 has long been a winner for the Toyota brand. However, supply chain issues that previously kept the 2021 used model pricing high have since been resolved. In addition, a refreshed model in 2024 with new exterior styling will almost always impact the used car market. On top of this, the intro of the Toyota Corolla Cross ultimately began cannibalizing Rav4 sales starting in 2022.

 

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