Older used cars are selling for a premium in Salt Lake
Aug 22, 2024, 10:05 PM | Updated: 10:42 pm
SALT LAKE CITY — Used cars at least a decade old used to be the epitome of affordability. Now, not as much.
For years, we’ve reported on the skyrocketing costs of new cars ignited by COVID’s one-two punch on supply chains. Right now, the average price paid for a new car is $48,644 according to data from Cox Automotive. So, the ripple effect of buyers buying cheaper used cars has reached those older cars.
New numbers shared with the KSL Investigators by ISeeCars.com show the average price tag on an older car selling in the Salt Lake area has reached $12,381. Ten years ago, that average was $7,052. That’s a 75.6% price jump for buyers.
Right now, one out of five used cars sold in Salt Lake is at least ten years old, according to ISeeCar’s study.
“More people are transacting in 10-plus-year-old cars than they were ten years ago,” Karl Brauer, executive analyst with ISeeCars, said. “Those cars are showing more activity and thus more value to the market.”
Just back in 2019, $20,000 got you access to 49.5% of the market for used cars one to five years old. Today, that same amount will only get you access to 12.4% of those same cars.
“So, you’ve gone from half the used car market to barely over a tenth of the used car market that you can get with that same $20,000, and I thought that was hugely telling on how much the market has shifted,” Brauer said.
There are still opportunities to save money on older used cars. Think sedan, wagon, or a hatchback. Demand for those types of cars is slow compared to trucks or SUVs. So, generally, they can be found for $10,000 or less.
“If you have a sedan that will serve your lifestyle, and you find a solid one, and you get it checked out, that’s probably your best value in a used car right now,” Brauer said.
ISeeCars found only five metro areas experiencing higher price changes than Salt Lake: Oklahoma City, Grand Rapids in Michigan and Miami, West Palm Beach, and Jacksonville in Florida.
So Brauer said that gives Utahns a lot of options to save money if they’re willing to travel. Even if you spent, say $400 on airfare and gas money and a day traveling to buy a car with a price that’s $2,000 less than a local car you’re considering.
“$1,600 and 24 hours of your time? It’s not a bad use of your time,” Brauer said.
Whether you buy your car here or somewhere else – one absolute must is having a mechanic inspect it. Buyers who skip this part can wind up with a car needing thousands of dollars worth in repairs.
