Are Used Cars Still Expensive

Used car prices have cooled from pandemic peaks but remain higher than pre-2020 levels due to limited inventory and strong demand. While SUVs and popular models still command premium prices, smart shoppers can find deals with research, timing, and negotiation.

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Are Used Cars Still Expensive? The 2024 Reality Check

If you’ve shopped for a used car in the past few years, you’ve probably noticed something: prices aren’t what they used to be. Remember when a 5-year-old SUV could be had for a fraction of its original sticker price? Those days feel like a distant memory. While used car prices have dropped from the sky-high levels seen during the pandemic, they’re still significantly more expensive than they were before 2020.

So, are used cars still expensive? The short answer is yes—but it’s not all bad news. The market is slowly returning to normal, and smart buyers can still find great value if they know where to look. In this guide, we’ll break down what’s driving used car prices, why SUVs are especially pricey, and how you can navigate the market to get the best deal possible.

Why Used Car Prices Stay High in 2024

Are Used Cars Still Expensive

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Even though the worst of the supply chain crisis has passed, several factors continue to keep used car prices elevated. Understanding these forces can help you make smarter buying decisions.

Low Inventory and High Demand

One of the biggest reasons used cars remain expensive is simple supply and demand. During the pandemic, new car production slowed dramatically due to factory shutdowns and semiconductor shortages. This meant fewer new vehicles hit the market, which in turn reduced the number of trade-ins and lease returns—two major sources of used inventory.

Even now, with production ramping up, the used car market hasn’t fully recovered. Many consumers who would have bought new cars in 2020 and 2021 delayed their purchases, creating a backlog of demand. As a result, used vehicles—especially reliable, low-mileage models—are still in high demand.

Strong Resale Value of SUVs

SUVs have dominated the automotive market for over a decade, and that trend shows no sign of slowing. According to industry reports, SUVs now make up more than 60% of new vehicle sales in the U.S. This popularity directly impacts the used market.

Because SUVs are so desirable—offering space, safety, and versatility—they hold their value better than sedans or hatchbacks. A 3-year-old midsize SUV like a Toyota RAV4 or Honda CR-V might retain 60–70% of its original value, making it nearly as expensive as a new base model. This strong resale value keeps prices high, even as the overall market cools.

Inflation and Rising Interest Rates

Broader economic factors also play a role. Inflation has increased the cost of nearly everything, including vehicles. At the same time, rising interest rates have made auto loans more expensive. While this doesn’t directly raise the sticker price of a used car, it increases the total cost of ownership, making buyers more cautious—and willing to pay a premium for reliability.

How Much Are Used Cars Really Costing Buyers?

To get a clearer picture, let’s look at some real-world examples. According to Kelley Blue Book, the average transaction price for a used vehicle in early 2024 was around $26,500. That’s down from a peak of over $28,000 in 2022, but still well above the $22,000 average seen in 2019.

For SUVs, the numbers are even steeper. A 2021 Toyota RAV4 with 30,000 miles might list for $28,000–$30,000, depending on trim and condition. Compare that to a new base RAV4, which starts around $32,000. The difference is minimal—especially when you factor in the used car’s proven reliability and lower depreciation.

Price Differences by Vehicle Type

Not all used cars are created equal when it comes to pricing. Here’s a quick breakdown:

Tips for Finding Affordable Used Cars in a Tight Market

Even in a high-priced market, there are ways to save. With the right strategy, you can still find a reliable used SUV or car without breaking the bank.

Shop Off-Peak Seasons

Timing matters. Dealers are often more willing to negotiate during slower months. Late fall and winter—especially January and February—are ideal times to buy. Fewer shoppers mean less competition, and dealers may be eager to move inventory before the spring rush.

Expand Your Search Radius

Don’t limit yourself to local dealerships. Use online platforms like Autotrader, Cars.com, or CarGurus to search nationwide. You might find a better deal just a few hours away, and many dealers now offer delivery or shipping options.

Consider Older or Higher-Mileage Models

A 7-year-old SUV with 80,000 miles might seem like a risk, but if it’s been well-maintained, it could be a smart buy. These vehicles have already taken the biggest depreciation hit, so you’re paying for reliability, not brand-new status. Just be sure to get a pre-purchase inspection.

Look for Private Sellers

Private sellers often price their vehicles lower than dealerships because they don’t have overhead costs. However, you’ll miss out on warranties and return policies, so proceed with caution. Always meet in a safe location and bring a mechanic if possible.

Negotiate Like a Pro

Even in a seller’s market, negotiation is still possible. Start by researching the car’s fair market value using tools like Kelley Blue Book or Edmunds. Point out any flaws—scratches, worn tires, or outdated tech—and use them as leverage. Be polite but firm, and don’t be afraid to walk away if the price isn’t right.

Certified Pre-Owned vs. Regular Used: Is It Worth the Extra Cost?

One way to reduce risk when buying used is to choose a Certified Pre-Owned (CPO) vehicle. These cars undergo rigorous inspections, come with extended warranties, and often include perks like roadside assistance and free maintenance.

But CPO vehicles come at a premium—typically 10–15% more than a similar non-certified model. So, is it worth it?

Pros of CPO Vehicles

Cons of CPO Vehicles

For buyers who prioritize peace of mind and plan to keep the car long-term, CPO can be a smart investment. But if you’re on a tight budget, a well-inspected regular used car might offer better value.

The Bottom Line: Are Used Cars Still Expensive?

Yes, used cars—especially SUVs—are still more expensive than they were before the pandemic. But the market is improving. Prices have stabilized, inventory is slowly increasing, and buyers have more tools than ever to find fair deals.

The key is to be patient, do your research, and stay flexible. Whether you’re eyeing a compact SUV for city driving or a midsize model for family road trips, there are still good options out there. With the right approach, you can drive away in a reliable used vehicle without overpaying.

So, are used cars still expensive? In many cases, yes. But they don’t have to be out of reach. By understanding the market, knowing what to look for, and shopping smart, you can find a great car at a price that fits your budget.

Frequently Asked Questions

Are used car prices dropping in 2024?

Yes, used car prices have dropped from their 2022 peak but remain above pre-pandemic levels. The market is stabilizing, with modest declines expected through 2024.

Why are used SUVs so expensive?

Used SUVs are expensive because they’re in high demand, hold their value well, and are often low-mileage with strong reliability records. Popular models like the RAV4 and CR-V command premium prices.

Is it better to buy a used SUV or a new one?

It depends on your budget and priorities. A used SUV offers lower depreciation and proven reliability, while a new one comes with the latest features and full warranty coverage.

How can I find the best deal on a used car?

Use price comparison tools, shop off-peak seasons, expand your search radius, and consider private sellers. Always research the vehicle’s value and get a pre-purchase inspection.

Are CPO vehicles worth the extra cost?

CPO vehicles offer peace of mind with inspections and warranties but cost more. They’re worth it if you want lower risk and plan to keep the car long-term.

Will used car prices ever return to 2019 levels?

It’s unlikely prices will fully return to 2019 levels due to inflation, higher production costs, and sustained demand. However, increased inventory may lead to more competitive pricing in the future.