It’s no secret that the past two years have been an absolute rollercoaster for the automotive market. Unlike your traditional roller coaster, however, this roller coaster just keeps going up.
Your Used Car Might Be Worth More Than You Think, Here’s what to Know
With the prices of new and used cars ticking higher than ever before, it’s been quite a scene if you’ve spent some time at your local car dealer. While prices have started to cool down over the past couple of months, the price of used cars has never been more confusing than now.
According to newly released information from the automotive website iSeeCars.com, some used models have actually seen unprecedented levels of appreciation in vehicles three to five years old. Here’s what you need to know about this unexpected rise in appreciation of select used vehicles.
Used Models Worth More Now Than Their New MSRP Values
According to iSeeCars.com there are a number of models that are three and five years old that are pulling in unprecedented levels of appreciation. At the top of this list is the Porsche 911. This rear-engine sports car has seen an appreciation of 5.7%, a whopping $11,373 more than its initial MSRP value.
Following closely with comparable appreciation values are the Toyota RAV4 Hybrid and the Jeep Wrangler Unlimited. The RAV4 Hybrid saw a 2.5% appreciation while the Wrangler Unlimited saw a 2.0 appreciation. With both models, this is just under the $900 appreciation value than the original MSRP value.
The Porsche 718 Canyon comes fourth on the list with an appreciation value of 1.8% higher or $1,342 higher than its original MSRP value. Rounding out the list in the fifth palace is the Jeep Wrangler which has been able to hold its MSRP value thanks to its .03% appreciation.
America’s Favorite Models Are Holding Their Value
In a normal world, used vehicles depreciate. Every driver knows the old adage of a new vehicle depreciating a couple of thousand dollars the second you drive it off the lot. In today’s car market, however, that depreciation is happening at a much smaller scale.
Popular models like the Honda Civic and Toyota C-HR have been able to maintain close to their MSPR values with both dropping down just $352 and $639 respectively. In the world of luxury, the Mercedes Benz G-Class has seen just a slight dip in depreciation at a mere .06%. Other models with typically higher depreciation rates including the Chevy Camaro and Kia Rio have both seen a deprecation of 3.5%.
In the pre-Covid world, used vehicles depreciated at an average rate of 20% in their first year and a whopping 40% in their fifth year. This is a stark difference from today’s 16.9% national average depreciation rate for vehicles that are three years old.
iSeeCars’s Executive Analyst Karl Brauer shares “This is unprecedented in used vehicle pricing. Finding multiple three-year-old used models worth more than their new MSRP is something we’ve not seen before.”
What to Do If Your Used Vehicle Has Appreciated
As with all markets, as supply begins to bump up again and demand levels out in the landscape of used cars, these values are likely to even out over the next couple of years as well. Until then, if you’re one of the lucky many that have a highly appreciating used vehicle on your hands, this might be the perfect time to let it go and capitalize on its unexpected value.
If there’s anything that might be certain, it’s that these unexpected appreciation levels are not here to stay, and it will likely be some time before we see such high values for used vehicles again.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.