We had a discussion about buying new vs. used in another thread. Turns out, tariffs and high financing costs have pushed the price of used cars to eye-popping levels.
The average three-year-old car costs about $33,000, according to an analysis in August from iSeeCars, an online car search site.
A three-year-old car was often the sweet spot for buying used, auto experts say. Those vehicles — typically, leased models going back to dealers for resale — have relatively low mileage; have passed the peak period of depreciation, or drop in value; and often have the advanced safety features found in pricier, newer cars.
The price of used cars jumped during the pandemic. I asked our Future AI Overlords to make me a chart showing prices for 3-year-old used cars (as discussed in the article), absolute and as a proportion of new car prices. It’s at the bottom. The real shift in used car prices happened in the pandemic.
The article attributes the rise in used car prices to tariffs and financing, but doesn’t actually support that claim and provides no explanation. I think it’s simply wrong. The author noticed that used car prices are high, and then mistakenly concluded that it’s due to recent developments. It’s not. These prices have been rising more slowly than inflation for the last several years.
Ratio of 3-Year-Old Used Car Price to New Car Price (2000–2026)
Average price of a new car 2026 $50,000.
Historically, a 3year old car with under 60,000 miles on average sells for 30% less
So current cost of such in today’s market is in line with historic standards
$33,000
Are tariffs increasing the price of new cars?
Most “cars” aren’t actually cars, though. They’re SUVs and trucks.
My brand new Mazda hatchback with all the bells and whistles can be had for less than $33k. My kids Kia hybrid hatch is less than $33k brand new. both are very nice cars.