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One of these cars is almost 20% cheaper than it was four months ago.
Image source: Getty Images
The average cost of a new car hit a record high last year at $49,507. According to Kelley Blue Book (KBB), Americans have paid above a car’s manufacturer’s suggested retail price (MSRP) every month since July 2021. Used car prices also hit an all-time high last year in April before beginning to fall. While the average new car is 5% more expensive than it was a year ago, used car prices have started to drop. The average used car cost $27,143 in December, about $1,000 less than the previous year. Some used car prices have dropped even more, especially electric vehicles. Here are the used cars with the biggest price drops.
Top 10 cars with the largest price decreases
Biggest price drops for EVs
Electric vehicles are a costly part of the overall market, with the average cost close to that of a luxury vehicle. But the average price for an EV in December was down 5.5% ($3,594) from the previous month. The average cost of a new EV sold for $61,448 and a used one was at about $42,700. Both are well above the cost of an average car.
The Tesla Model 3 saw the biggest price decrease, at close to 17% cheaper than four months ago. Tesla, which makes up 65% of all EV cars, has begun to slash the cost of its new cars as demand for EVs has dropped. Some experts believe that Tesla is dropping prices as its competitors begin to catch up, as a way to help boost demand so Tesla can continue to dominate the EV market.
Prices for the Hyundai Ioniq Hybrid dropped by 11%. Hyundai discontinued the Ioniq last year to focus on its next generation of EVs. The other two vehicles that saw a double digit decrease from September to December of last year were the Nissan Kicks (-11.9%) and Ford Mustang (-11.5%).
Used luxury car prices increase
While the used car market has seen an overall drop in prices from the previous year, some used cars saw prices increase by double digits. The top ten used cars with the biggest price increases were all luxury cars, with the Cadillac Escalade and Porsche 911 increasing by 15%. Other brands that held up well in price were Mercedes-Benz, Maserati, BMW, Acura, and Chevy’s Corvette.
If you’re in the market for a new car but don’t want to spend too much money on a car loan, the 10 cars listed here may be worth considering, as they have all gotten significantly cheaper in the past year. Despite the price drop, Tesla’s Model 3 price still makes it more expensive than gas-powered vehicles. Overall used car prices have started to drop but are still well above pre-pandemic levels. With the supply of used cars increasing, there may be greater opportunity for shoppers on a budget to purchase a car in the future.
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