Money

These used car brands saw the biggest drop in value since the pandemic's peak

By Stacker

Published October 4, 2023 11:42 PM

zedspider // Shutterstock

These used car brands saw the biggest drop in value since the pandemic’s peak

Cars for sale at a dealership.

Following record-setting price hikes throughout 2021, the cost of a used car is falling—although sticker prices are still more expensive than at any point prior to the start of 2020.

CoPilot analyzed used car data from dealerships around the country to rank the used vehicle models that have come down in price the most from their inflationary peak in early 2022. Price data is current as of Sept. 12. Exotic luxury car brands such as Maserati and Lamborghini were not included in this analysis.

Used car prices exploded over the course of 2021 in large part because of the chip shortage that stalled new automobile production once factories reopened. As global automobile production plummeted by 26% in the first three quarters of 2021, consumers flocked to the used-vehicle market for better deals and more selection, quickly driving used car prices sky-high.

But what goes up must come down, with the UBS predicting that global car production this year will outpace sales of new cars by 6%. That oversupply inevitably drives prices down for new and used cars—although rising interest rates could still spell higher monthly payments for consumers.

The brands whose vehicles depreciated the most since their peak include electric vehicle makers such as Tesla and Polestar, which have tumbled more than $20,000 from the retail prices they commanded a year ago. Tesla, in particular, moved to cut prices at the start of this year amid slowing sales and fear of a potential drop-off in demand as the economy slows.

Dom DiFurio // Stacker

The one-two punch that has you paying more for used vehicles

A chart showing the Consumer Price Index for used cars and trucks from 2010 to today. Prices remained relatively consistent during the 2010s and then spiked in 2021. The trend line shows price increases cooling some and then rising again in summer 2023.

That trend in which lower inventories were pushing up the price of new vehicles could be easing, as analysts at Cox Automotive report new vehicle inventory increased 68% in August compared to the same month last year.

In the used vehicle market, inventories remain down 9% over the previous year, according to Cox. Despite lower inventories, prices have cooled about 6% from this time last year on average among all used vehicles.

Read on to see the vehicle brands that have cooled off the most.

Jonathan Weiss // Shutterstock