Study: Used Cars Are Getting More Afforadble

Good news if you're shopping for a used, or electric, car.  They're getting more affordable according to a new iSeeCars study. Researchers say that used car and electric vehicle affordability actually improved over the past 11 months after years of dramatic price increases. iSeeCars' reports that despite a substantial hike in interest rates since October 2022, household income increased by 3.7 percent and used car prices fell by 5.4 percent. Electric vehicle prices dropped even more. Used EVs were down nearly 20 percent and new EVs fell 10 percent.   

Here are some of the study highlights:

• iSeeCars says over the past year used cars have become 5.8 percent more affordable as prices fell and median household income rose
• New and used electric vehicles are rapidly improving in affordability, with prices down 10 percent for new EVs and 20 percent for used EVs
• Researcher says 23 used car models have become affordable since October 2022, including the Chevrolet Blazer, Honda Pilot, and Tesla Model 3

Now for the bad news. Which is that new vehicles are getting less affordable.  They've seen continued price hikes over the past 11 months.  Researchers say combined with higher interest rates, these increases have made new cars less affordable over the past year, as measured by a 6.8 percentage drop in the iSeeCars Affordability Index for new cars.  The situation is also prompting buyers to take out 90-month loans.  Here are some of the stats:

• New cars became less affordable due to higher prices and higher interest rates increasing their monthly payments by 11.3 percent
• 6 New cars have become unaffordable since October of 2022, including the Ford Bronco, Hyundai Tucson Hybrid, and Toyota Prius Prime
• Consumers now need to take a 90-month loan to make the average new car affordable, but that loan term adds almost $14,000, or 28 percent, to the total cost of a car

You can see the full iSeeCars report by clicking here →

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