Used Cars That Appreciate Despite a Softening Market (PDF)

Typically, automobiles don’t appreciate value. However, in 2022, the global market experienced an unprecedented shift, causing pre-owned cars to trade for an average of 8.5 percent more than new cars. Fortunately, the market has since returned to normal, and this is no longer the case in 2023.

iSeeCars data reveals that lightly used vehicles manufactured between 2022 and 2023 are currently worth 8.1 percent less than their new counterparts, resulting in a loss of roughly $3,700. This is a stark contrast to the previous year, where lightly used vehicles were worth an average of $3,574 more than brand-new models, thanks to the pandemic’s aftermath.

This devaluation is primarily due to specific models such as the Audi e-tron, which has seen pre-owned prices plummet by almost 28 percent or $22,757 compared to brand-new prices. The Alfa Romeo Stelvio has suffered a similar fate, with its average value dropping by 26.9 percent since the new.

Top 10 Used Vehicles That Increased in Value Compared to New Ones:

To minimize the impact of depreciation, it’s advisable to stay away from high-end cars. A considerable number of the top 20 worst performers in terms of resale value are luxury vehicles from well-known brands such as Porsche, Audi, Alfa Romeo, and Mercedes-Benz.

Although the used car market is gradually normalizing, it is still not entirely back to normal. The average price for a lightly-used car is now $41,812, and 14 cars are currently appreciating in value after leaving the dealership.

Interestingly, the vehicles that are gaining in value are typically fuel-efficient, reasonably priced, and practical. The Ford Maverick is the biggest gainer, appreciating by 12.3 percent, followed by the Toyota Corolla Hybrid, which appreciated by 7.9 percent.

The second-hand market has reached a more balanced state due to several factors, including a return to normal new vehicle production. Other factors that have impacted consumer spending include inflation and interest rates, which have contributed to a significant decline in used car prices over the past year.

Top 10 Used Cars with the Highest Depreciation in 2023.