Special Report

The Most Overpriced Used Cars in the US

The microchip shortage is still having a significant impact on the American auto market. Even though the average price of a used car declined for four straight months as of May 2022, the price is still thousands of dollars higher than what it was a year earlier.

In May 2022, the average used car price was just over $34,000 – an increase of nearly $5,000, or 16.9%, from May 2021. But not all used cars prices have appreciated by that amount – some particularly in-demand autos have become over 30% more expensive over the past 12 months.

To determine the 10 most overpriced used cars, 24/7 Wall St. reviewed data from automobile search engine iSeeCars’ report Used Car Prices Fall in May, Demand Remains High for Fuel-Efficient Vehicles. iSeeCars reviewed nearly 2 million purchases of 1-5-year-old used cars in May 2021 and May 2022 to determine the vehicles with the greatest price increase over that time.

Many of the used cars with skyrocketing prices are alternative fuel vehicles like hybrids or all-electric cars. iSeeCars executive analyst Karl Brauer attributes this to record-high gas prices, as the national average reached $5 per gallon for the first time in June 2022. Costs for both electric and hybrid models have average increases of more than 30%. These are cars from five years ago that get the best gas mileage

Even with the price increases, many of the most overpriced used cars are still relatively inexpensive. Eight of the 10 cars on this list cost less than $40,000, and the prices of six of the 10 are well under the national average of $34,119 for all used cars. This is the cheapest car in America.

Click here to see the most overpriced used cars

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.