When a new car shortage during the COVID-19 pandemic pushed prices up, used car prices also surged. Manufacturers could not get key components, so supply to dealers dropped. Buyers had no place to turn other than to cars that had been owned before. (These 15 cars hold their value the longest.)
As the number of new cars available has risen, used car prices have softened. This is particularly true in certain cities. People can travel to these places if they want real deals.
iSeeCars released a list of the best markets for used cars. The study “The Most and Least Expensive Cities to Buy a Used Car” pointed out that shopping in the right city could save used car buyers up to $6,100 on their next purchase.
The research shows the average used car price in America based on an iSeeCars examination of 6.5 million used cars. The spread between the most expensive of the 50 markets covered and the cheapest was $6,173.
Some cities have low used car prices because they are low-income metros. Limits on what people can afford to drive determine what sellers can charge. According to iSeeCars Executive Analyst Karl Brauer: “Buyers in Cleveland and Cincinnati, the top two cities with the least expensive cars, are already living in the lowest-cost cities and can shop locally.”
The average used car price in Cleveland is $31,458. That is 8.1% below the national average.
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Cleveland is a train wreck of a city. Its population peaked at 908,000 in 1950. As America’s industrial sector eroded, the figure dropped to 361,000 last year. The median household income in the city is $33,000, about half the national number. The poverty rate is 21%, well over twice the national figure.
No wonder used car prices are cheaper in Cleveland.
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Cities With the Cheapest Used Cars
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