Unlike houses, artworks, and fine wines, cars are depreciating assets. From the moment you drive a brand-new car off the lot, you start hemorrhaging hundreds or even thousands of dollars. Little wonder most Americans never own a new car their entire lives. The used car market dominates car sales in the United States, from first-time buyers to seasoned motorists.
Indeed, despite being one of the world’s largest markets for new cars, the majority of cars currently on US roads were bought and sold used. Almost every motorist has at one point purchased a used car.
What do we know about the US used car market? How many used cars are sold each year? And what is the average price of a used car? We answer all these questions and more below. Let’s delve into used car statistics as of 2024.
Key Insights
- In 2022, 38.6 million used cars were sold in the US. This number has been fairly stable over the past decade, with 36.9 million used cars sold in 2010 and a peak of 42.7 million used cars in 2017.
- Approximately 294 million vehicles were on US roads in the final quarter of 2022.
- Used vehicle sales surpassed new vehicle sales in 2022, with 13.6 million new vehicles sold compared to 38.6 million used vehicles.
- 73% of all vehicles sold in 2022 were used, indicating that nearly 3 out of 4 cars sold were used.
- Two-thirds of the respondents in an annual Car Brand Perception study preferred purchasing a used car, with 71% being positive about buying a used car.
- The initial depreciation for a new car is between 20% to 30% of the car’s value by the end of the first year, and it loses a further 15% to 18% of its value every subsequent year.
- In 2022, the Ford F-150 was the most popular used car sold, making up 3.3% of total used car sales.
- The used car dealer market size in the US was valued at $138.1 billion in 2022.
- The average price for a one-to-five-year-old used car was around $33,582 in 2023.
- State-wise, Vermont had the cheapest average used car price at $31,445, whereas Wyoming had the highest average used car price at $41,405.
- The average price of a used electric vehicle (EV) was around $38,000.
- Between 2017 and 2022, the average age of cars in the US rose to over 12 years, with the average age of used cars at the time of sale being 6.47 years.
How Many Used Cars Are Sold Each Year in US?
In the US, 38.6 million used cars were sold in 2022. That figure has remained remarkably stable over the past decade, with 36.9 million used cars sold in 2010. In the 12-year period, the number peaked in 2017, when a staggering 42.7 million used cars were sold.
However, analysts predict the market is about to undergo a substantial change, in part due to a shift in vehicle-buying behavior following the pandemic. In the final quarter of 2022, ~294 million vehicles were operating on US roads. The combined demand for vehicles alongside the automotive semiconductor shortage is resulting in declining used vehicle inventories. Expect used and new vehicle prices to rise starkly in the coming years should the trend continue.
Annual Used Car Sales vs. New Car Sales
In 2022, new vehicle sales measured 13.6 million – a low point compared to the previous decade, when sales regularly topped 17 million. As a proportion of overall car sales, 73% of vehicles sold were used in 2022 – almost 3 in 4 car sales.
That’s not just frugality – many Americans prefer to purchase a used car. According to the annual Car Brand Perception study, two-thirds of respondents said they would consider purchasing a late-model used car. In fact, when asked if they’d prefer a late-model car to a new car, 71% of respondents were positive about the used car: 75% of men and 67% of women.
The perks are clear: no substantial depreciation, a greater choice of makes and models, higher auto loan rates, and less risk from damage.
How the Price Of Used Cars Depreciates Over Time
We’ve spoken a lot about car depreciation. But how much value does a used car lose over time? Let’s look at new cars first – you can expect to lose 20% to 30% of the car’s value by the end of the first year. So, if you purchased a new Chevrolet Trailblazer, currently priced at $22,100, your resale value would be just $17,680 at best after a year.
Worse still, every subsequent year shaves a further 15% to 18% off the value. Within five years, your initial investment worth tens of thousands is reduced to 40% or less.
Used cars, on the other hand, even just a year old, avoid the initial hit from depreciation. Used cars depreciate just like a newer model, but every year that passes allows the buyer to save more of their money – albeit at a greater risk of wear and tear.
Not all models depreciate equally: In 2016, the Chevrolet Colorado only lost 7% of its value after the first year, whereas the Volvo S60 shed an eye-watering 34.4% (approximately $14,000). Choosing models that come with a steep depreciation curve is an excellent way for prospective used car owners to find an incredible deal.
Most Popular Brands and Models of Used Cars
iSeeCars analyzed more than 17.4 million vehicle sales in 2021 to identify the top selling used cars. Remaining the bestselling vehicle, the Ford F-150 captures approximately 3.6% of total vehicles sold in the United States – head and shoulders above its rivals. Indeed, much of the market is dominated by large SUVs as America’s love affair with trucks continues. Whether higher fuel prices will impact the market going forwards remains unknown.
Here are the top ten most popular used cars in the US in 2022 (percentage of total used car sales):
- Ford F-150, 3.3%.
- Chevrolet Silverado 1500, 2.8%.
- Ram 1500, 2.3%.
- Chevrolet Equinox, 2.2%.
- Honda Civic, 1.8%.
- Toyota Camry, 1.7%
- Toyota RAV4, 1.7%.
- Nissan Rogue, 1.7%.
- Ford Escape, 1.5%.
- Jeep Grand Cherokee, 1.5%.
Looking through the list, three brands stand tall: Ford, Chevrolet, and Toyota dominate the US used car market. Toyota, in particular, also bags 13th and 14th place, with a name renowned for reliability.
Total Value of Used Car Market
According to the latest sales data from Statista, the US used car dealer market size is $138.1 billion. As mentioned, light vehicle sales were 38.6 million in 2022. Much of the market is dominated by the sale of light tracks. Indeed, the quarterly net purchase of light trucks grew in Q4 of 2019, reaching $194.75 billion in Q2 of 2022. That follows a long-term trend of used light truck sales being greater than car sales since 2013.
Models such as the Ford F-Series, Ram Pickup, and Chevrolet Silverado are in high demand, as just seen. Nevertheless, pickup trucks remained the most expensive used vehicle body type, averaging $41,239 at present.
Average Price of Used Cars
In 2023, the average one-to-five-year-old car cost approximately $33,582. That comes after a drop in used car prices over the previous two years due to the global microchip shortage. Other analysts place the average used car prices at around $27,266 – a reduction from the previous year but 38% higher than the pre-COVID average.
With demand for used cars high, price levels of new cars may not normalize until the backend of the 2020s; some predict they’ll never return to normal levels.
State-by-state used car prices are relatively uniform. Vermont is the cheapest state in the nation at just $31,445, whereas Wyoming ranks 50th with an average price of almost $10,000 higher at $41,405.
Electric Vehicle Used Car Sales
A novel new market is the sale of used electric vehicles (EVs). Until recently, EVs were uniformly new sales as the technology was in its infancy. However, as the market matures, used EVs are becoming more common.
The average price of a used EV is around $38,000, following a decline in 2022. The market has snowballed in the past two years; popular models include 2017 Chevrolet Bolt, 2018 Nissan LEAF, Toyota Prius Prime, and 2019 Tesla Model 3.
What is the Average Age of a Car in the US?
Between 2017 and 2022, the average age of US cars climbed to over 12 years – a new record. Culprits behind the rise are the aforementioned semiconductor chip shortage and reduced production from automakers. As Americans choose to hold onto their vehicles for longer, the average age of used cars at the time of sale is 6.47 years old.
There is significant diversity between states: New Jersey (5.70 years), Florida (5.76), and the District of Columbia (5.80) have the youngest used cars compared to Idaho (7.98), South Dakota (7.98), and Wyoming (7.71). Interestingly, South Dakota and Wyoming are also the states where residents pay the highest average used car prices despite the cars being older.
Sources:
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