New car prices suck right now, but used cars can be worse.
After we published our TFLcar video showing the insane state of new car prices here in the U.S., research firm iSeeCars published a study looking into the cars and trucks that cost more used than new. In a normal, i.e. not completely berserk, new car market, vehicles lose a good chunk of their value over their first two to three years on the road. This study, however, covers 470,000 lightly used cars covering the 2019 and 2020 model years, and found the exact opposite trend with certain models.
As of early June, the average “lightly used” car in those model years cost just 3.1% less than their new counterparts. Compare that to November 2020, when those same cars were 10.8% less valuable. The global chip shortage and other supply issues have hammered new car production, compelling buyers to turn to the used market, and dealers to increase their prices in turn. “Dealers may think used car buyers are willing to pay more for the instant gratification of a lightly-used vehicle that they can drive right off the lot rather than waiting for a new one,” said iSeeCars executive analyst Karl Brauer.
How much that’s actually true depends on which vehicles we’re talking about, hence this recent study. In short, you can make out well right now if you actually are willing to consider selling one of the cars or trucks on the list below.
The 16 cars that cost more used than new right now:
|Rank||Model||New Price||Used Price||$ value over new price (%)|
|1||Kia Telluride||$44,166||$47,730||$3,564 (+8.1%)|
|2||GMC Sierra 1500||$54,205||$57,671||$3,466 (+6.4%)|
|3||Toyota Tacoma||$37,902||$39,857||$1,955 (+5.2%)|
|4||Mercedes-Benz G-Class||$182,631||$190,078||$7,447 (+4.1%)|
|5||Toyota RAV4 Hybrid||$34,995||$36,352||$1,357 (+3.9%)|
|6||Toyota Tundra||$49,643||$51,474||$1,831 (+3.7%)|
|7||Dodge Challenger||$39,375||$40,764||$1,388 (+3.5%)|
|8||Toyota 4Runner||$45,382||$46,867||$1,485 (+3.3%)|
|9||Hyundai Palisade||$44,063||$45,356||$1,293 (+2.9%)|
|10||Tesla Model 3||$44,409||$45,677||$1,268 (+2.9%)|
|11||Honda Civic||$26,331||$27,058||$727 (+2.8%)|
|12||Dodge Charger||$38,977||$39,874||$897 (+2.3%)|
|13||Honda Odyssey||$37,612||$38,048||$435 (+1.2%)|
|14||Kia Rio||$17,346||$17,472||$127 (+0.7%)|
|15||Subaru Crosstrek||$29,474||$29,642||$168 (+0.6%)|
|16||Subaru WRX||$34,487||$34,568||$81 (+0.2%)|
Looking at a Telluride? Prepare to pay a premium for it.
We knew the Kia Telluride was in short supply based on our most recent pricing story. In that research, we noticed that dealers across the country were charging up to $10,000 over MSRP for brand new models due to high demand and low supply. This study shows that pricing trend trickling down to used models as well, making the Kia Telluride one of the most lucrative vehicles to own should you actually sell one you own right now.
Naturally, this sort of story cuts both ways. It is a seller’s market at the moment, so if you’re looking to buy…I’d honestly suggest holding off, if at all possible. Unless you absolutely need a car right now or you’re willing to pay that premium, it may be best to wait until prices are a bit less crazy.