The used car market is experiencing a resurgence in popularity as buyers seek to save money in the face of rising new car prices. According to a recent study by iSeeCars, older used vehicles are becoming increasingly popular, with sales of cars 10 years or older increasing by 30% since 2014. In particular, hatchbacks, sedans, and wagons are seeing a surge in demand.
### Trends in the Used Car Market
Over the last few years, recent model-year used vehicles have become more expensive, leading buyers to opt for older models to save money. The supply of older vehicles remained steady from 2014 to 2017 but saw a significant decrease in 2020 as new car prices soared. This shift has led to older models accounting for a larger share of used car sales, growing from 15.1% in 2020 to 22.7% in 2024, with prices increasing by over $3,000 on average.
### Popularity of Sedans, Hatchbacks, and Wagons
Sedans, hatchbacks, and wagons are at the forefront of the growth in the used car market, with buyers gravitating towards these body styles for their affordability and practicality. These types of vehicles often experience less wear and tear during their lifespan, making them attractive options for used car buyers. Despite their increasing popularity, prices for sedans, hatchbacks, and wagons have not seen a significant spike, with many available for $10,000 or less.
### Benefits of Buying Older Used Cars
Opting for an older used car can offer several advantages, including lower purchase prices and potentially lower insurance costs. Older cars also tend to have lower depreciation rates, meaning they may hold their value better over time compared to newer models. Additionally, older vehicles may have already undergone any necessary repairs or recalls, reducing the likelihood of unexpected maintenance costs for buyers.
### Market Outlook for Used Cars
As the demand for older used vehicles continues to grow, it is expected that prices for recent model-year used cars will stabilize or potentially decrease in the coming years. Buyers looking to save money on their next vehicle purchase may find better deals in the used car market, particularly on older sedans, hatchbacks, and wagons that offer a balance of affordability and reliability.
### Conclusion
The used car market is experiencing a shift towards older models, with sedans, hatchbacks, and wagons leading the trend. Buyers are increasingly turning to used cars to save money in the face of rising new car prices, with older vehicles offering a blend of affordability and practicality. As the popularity of older used cars continues to rise, buyers can expect to find a wider selection of affordable options in the market, making it an attractive alternative to buying new.