Current Trends in the Used Car Market
Typically, economic fluctuations and a reduction in travel go hand in hand with a decline in vehicle demand. However, the contemporary used car market is surprisingly contradicting this norm. A variety of factors has led to many recent model vehicles selling for prices exceeding their original sticker values. One of the primary causes is a persistent microchip shortage, which was intensified by factory shutdowns linked to the COVID-19 pandemic. As cars rely on over 100 microchips for various functions, this shortage has severely impacted vehicle production.
In addition to the microchip dilemma, supply chain complications—including a lack of delivery drivers—have further complicated the transportation of completed vehicles to dealerships. This limits the availability of both new and used cars on the market. The scarcity of new vehicles is a significant factor driving up prices for used cars. With new car inventories being exceedingly low, many consumers are shifting their focus to used cars, thus increasing demand and prices in that sector. Moreover, the number of older used vehicles available for purchase is also dwindling.
During the Great Recession, car manufacturers cut back on production between 2009 and 2011, resulting in fewer well-maintained, affordable older cars entering the resale market. Initiatives like the government-backed Cash for Clunkers program further removed many older models from circulation, exacerbating the shortage of budget-friendly vehicles.
Due to these challenges, dealerships have begun offering elevated prices for trade-ins to bolster their inventories, which has also contributed to the surge in used car prices. According to research from Edmunds, the average trade-in value for used cars skyrocketed by more than 75 percent from June 2020 to June 2021, reaching an average of $21,224. Currently, used car prices are approximately 42 percent higher than they were at the beginning of 2020, with some models even fetching more than their original new prices.
Given these dynamics, it is crucial for prospective buyers and sellers to stay informed about local market conditions before making decisions, as prices can fluctuate significantly based on geographical location and specific vehicle models.
Table of Contents
- 1. 2021 Toyota Tacoma TRD Sport
- 2. 2021 Tesla Model 3 Standard Range Plus
- 3. 2021 Toyota RAV4 Hybrid XSE
- 4. 2020 Honda Civic Si
- 5. 2020 Kia Rio
- 6. 2021 Kia Telluride SX
- 7. 2020 Honda Odyssey EX
- 8. 2020 Dodge Challenger SXT
- 9. 2020 Chevrolet Corvette Stingray Coupe
- 10. 2021 Subaru Forester Sport
1. 2021 Toyota Tacoma TRD Sport
Price new: $41,862
Price used: $42,998
Pickup trucks have consistently been top sellers in recent years, and the Toyota Tacoma stands out as a popular choice. Remarkably, some used 2021 Tacoma models are being sold with only a minimal markup, nearly matching their new counterparts. The high demand for trucks, coupled with limited new vehicle inventories, has resulted in significant price increases. Nationwide, the Toyota Tacoma is experiencing rising prices due to its sustained popularity among consumers eager to purchase trucks in today’s market.
2. 2021 Tesla Model 3 Standard Range Plus
Price new: $41,190
Price used: $49,950
The Tesla Model 3 has managed to hold its value exceptionally well in the used car market. A notable example from the Dallas area was listed at a remarkable 21% premium. Electric vehicles (EVs), particularly Teslas, are becoming increasingly desirable as consumers favor shorter commutes and experience reduced range anxiety. The waiting list for new Model 3 orders strengthens its position in the secondary market, ensuring that used versions maintain elevated prices. With growing interest in EVs, this premium for used models is likely to persist.
3. 2021 Toyota RAV4 Hybrid XSE
Price new: $38,781
Price used: $44,998
The Toyota RAV4 Hybrid XSE has emerged as a favorite among hybrid vehicle enthusiasts, offering impressive fuel economy (around 40 mpg combined). Research indicates that used 2021 RAV4 Hybrid XSE models are selling for roughly $5,000 more than their new counterparts. The popularity of the hybrid version can be attributed to its limited availability and the growing emphasis on environmentally friendly vehicles. The base LE package for the hybrid offers a smaller markup, making it an appealing choice for buyers.
4. 2020 Honda Civic Si
Price new: $24,602
Price used: $31,998
The Honda Civic Si continues to capture the hearts of compact car enthusiasts, with used models now commanding a substantial markup. The Civic gained renewed popularity with its 2016 redesign and continues to be a top seller in the United States. In Ohio, a state where many Hondas are manufactured, used Civics are priced close to $32,000—around $7,000 more than the price of a new model. This price spike is a testament to the Civic’s enduring appeal and high demand in the used car market.
5. 2020 Kia Rio
Price new: $16,566
Price used: $20,590
Affordable vehicles like the Kia Rio have been particularly affected by the ongoing chip shortage, as manufacturers tend to prioritize higher-margin models. In Beverly Hills, a used 2020 Kia Rio LX with about 5,000 miles was listed for nearly $4,000 more than the new model. Despite the increase, the Rio remains an attractive choice due to its fuel efficiency (41 mpg on the highway) and Kia’s robust warranty. Thus, even budget-friendly models like the Rio are witnessing significant price hikes in the current climate.
6. 2021 Kia Telluride SX
Price new: $50,648
Price used: $53,999
The Kia Telluride SX has quickly become a standout vehicle in terms of resale value, earning top ratings from Edmunds for two consecutive years. Despite being a relatively new entry, the Telluride is already fetching premiums in the used car market. In Seattle, several used Telluride SX models were listed for approximately $54,000, even with mileage ranging from 3,000 to 13,000. This surge in price reflects the vehicle’s ongoing popularity and its reputation as a highly-rated mid-size SUV, particularly for families.
7. 2020 Honda Odyssey EX
Price new: $33,944
Price used: $37,590
Family-friendly vehicles like the 2020 Honda Odyssey EX are also witnessing significant price increases, with used models in Pennsylvania selling for about $3,600 more than their new counterparts. The Odyssey EX strikes a balance of safety, comfort, and utility, making it an appealing option for families. The EX trim package provides a solid array of features without a major price increase, contributing to its strong resale value. Known for Honda’s reliability and the vehicle’s spacious interior, used Odyssey models are a reliable choice for family-oriented buyers.
8. 2020 Dodge Challenger SXT
Price new: $27,869
Price used: $32,999
The 2020 Dodge Challenger SXT exemplifies another case of a used vehicle commanding a higher price than its original MSRP. In markets like Minneapolis, gently used Challengers are being listed for around $32,999—approximately $5,000 more than the price of a new one. This price increase reflects the Challenger’s appeal as a spacious muscle car. Its unique combination of performance, comfort, and style makes it a highly sought-after vehicle in both new and used markets, even amidst fierce competition.
9. 2020 Chevrolet Corvette Stingray Coupe
Price new: $81,425
Price used: $98,135
Luxury vehicles such as the 2020 Chevrolet Corvette Stingray Coupe are also experiencing noteworthy price hikes in the used market. As a prestigious vehicle, the Corvette enjoys a built-in demand that keeps prices elevated. In the Boston area, several used Corvettes were priced above their original purchase amounts. Similar to the Tesla, limited availability and lengthy waiting lists for new Corvettes fuel strong aftermarket demand. Consequently, buyers seeking nearly new Stingrays are willing to pay more than they would for a brand-new model.
10. 2021 Subaru Forester Sport
Price new: $32,987
Price used: $34,649
The Subaru Forester Sport is a dependable crossover SUV renowned for its all-wheel-drive capability and ample ground clearance. It is particularly popular in regions like Colorado and Michigan, where off-road trails and heavy snowfall are common. Although its price markup is not as pronounced as some other vehicles on this list, used Forester Sports are being sold above MSRP in specific markets. This highlights the vehicle’s solid reputation and its continued popularity among outdoor enthusiasts and families alike.
The current landscape of the used car market is characterized by substantial price increases, with many vehicles now selling for more than their original new prices. Contributing factors such as microchip shortages, supply chain disruptions, and heightened demand for particular models are driving these trends. Whether it’s the rugged Toyota Tacoma, the cutting-edge Tesla Model 3, or the family-oriented Honda Odyssey, nearly every segment is experiencing price hikes. For consumers looking to buy or sell, it is essential to monitor market trends and pricing fluctuations closely.