5 Used Cars That Are No Longer Affordable
Finding a deal on used cars, trucks, and SUVs used to be easy. A new study shows that some used vehicles that might have been inexpensive after a few years are no longer depreciating in the same manner. These are some used cars that are no longer affordable, from Jeep, Kia, and Chrysler. Sport utility vehicles are pretty standard on this list, but that could be due to the popularity of SUVs increasing over the years.
Used cars that are no longer affordable start with the Jeep Compass
Car affordability was one of the main focuses of a new iSeeCars study. Since August 2019, new car affordability has decreased by 13.3%. Used car affordability decreased by 26.7% at that same time, led by the Jeep Compass.
Back in April 2019, the iSeeCars Car Affordability Index noted that used cars were about 99.5% affordable. By the time 2020 rolled around, that hit 93.4%, then 81.8% in 2021, and now it sits at 72.0% in 2022. In August 2019, the price of a three-year-old Jeep Compass cost $15,706 on average. In August 2022, a three-year-old Jeep Compass cost $25,605 on average.
Due to complications with the pandemic and the semiconductor chip shortage, prices of used and new cars are up. However, it seems used Jeep SUVs have been particularly impacted.
The Jeep Cherokee is another used car that is no longer affordable
In second place for used cars that are no longer affordable, the Jeep Cherokee has increased quite a bit in price. A three-year-old Jeep Cherokee would have been around $19,104. If someone tried to buy a used Jeep Cherokee these days, iSeeCars says it would cost about $26,927.
iSeeCars Executive Analyst Karl Brauer says the pandemic made it harder for Jeep to keep up with production. “The supply of these compact Jeep models easily met demand before the pandemic, but their demand outstripped supply after new car shortages forced Jeep buyers looking for a new model to consider used versions,” Brauer noted.
Third on the list of used cars that are no longer affordable was the Kia Sorento. A used Kia Sorento used to cost $18,785, but buyers would likely pay something like $27,013 in 2022.
Many vehicles that used to be under $20,000 are now above $25,000
In addition to the Compass, Cherokee, and Sorento, the Chrysler 300 and Volkswagen Tiguan have increased in price quite a bit. A used Chrysler 300 used to cost $20,120 but will now run buyers $27,137. The Volkswagen Tiguan used to be quite affordable at $16,149 but has jumped to an average price of $27,238 for a three-year-old version.
“The rise in new and used car prices has led to a drop in vehicle affordability for consumers,” Brauer said. Now more than ever, people are trying to find vehicles within budget. If that means choosing an affordable car, truck, or SUV over a popular one, that’s a decision buyers have to make.