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Popular cars that are still (relatively) affordable
Popular Cars That Are Still (Relatively) Affordable
Photo Credit: Andrew Zaikovskyi / Shutterstock
Inflation has hit many sectors of the economy hard over the last year, but few categories can compare to the automotive industry.
Economic experts debate how much the current period of inflation has come from increased consumer demand and how much has been caused by constraints on supply. In the vehicle market, both forces are clearly at play. Low interest rates, federal stimulus payments, and better-than-expected economic conditions throughout the pandemic gave households more money to spend on big purchases like cars. But the unpredictable spread of COVID-19 has made it more difficult for carmakers to meet demand. Due to difficulties sourcing materials and keeping plants staffed amid the pandemic, both automotive parts manufacturers and car factories themselves have frequently been forced to shut down or operate at reduced capacity. As a result of these issues, new vehicle supply is down 59% compared to this time in 2021.
The scarcity of new vehicles has driven up prices for current models. But this has also had a major effect on prices in the market for pre-owned vehicles. With fewer new cars available, consumers have been competing for used models, which has sent used car prices increasing even faster.
Used car prices rose at the fastest rate on record in Q1 this year
Year-over-year increases in used car prices have topped 30% for each of the last four quarters, reaching an all-time quarterly high of 39% in Q1 of 2022. Annual inflation in the used vehicle market had not topped 10% since 2010, early in the recovery from the last recession, and one would have to look to the Great Inflation period of the 1970s to see increases comparable to those in the current market.
Used minivans have experienced the largest price surge in recent months
And some types of used vehicles are seeing rates of inflation even greater than the overall average. Used SUVs, trucks, and crossovers—where carmakers have produced more inventory in recent years in response to changing consumer tastes—all have seen median price increases below 40% for the 2020 model year. Minivans and sedans, in contrast, have had the largest price increases in recent months at 47.5% and 45%, respectively. And with gas prices setting record highs in recent months, competition in these comparatively fuel-efficient categories could continue to keep prices elevated in the near future.
The current market is challenging for any buyer seeking out a used vehicle, but some recent makes and models have seen slower price increases than others. To determine the most popular cars that are most affordable, researchers at CoPilot calculated the difference between the current market price and the original price forecast for 100 of the most popular model year 2020 used vehicles on the market.
Here are 10 popular used cars that have gone up the least in price.
10. Jeep Wrangler Unlimited
Photo Credit: Cheri Alguire / Shutterstock
- Current price premium (%): +29.0%
- Current price premium ($): +$10,126
- Current price: $45,052
- Original price forecast: $34,926
9. Subaru Outback
Photo Credit: Everyonephoto Studio / Shutterstock
- Current price premium (%): +28.9%
- Current price premium ($): +$7,959
- Current price: $35,480
- Original price forecast: $27,521
8. Toyota Tundra
Photo Credit: RicoPatagonia / Shutterstock
- Current price premium (%): +28.1%
- Current price premium ($): +$10,652
- Current price: $48,524
- Original price forecast: $37,872
7. Lexus RX
Photo Credit: BoJack / Shutterstock
- Current price premium (%): +27.4%
- Current price premium ($): +$10,773
- Current price: $50,144
- Original price forecast: $39,371
6. Lexus NX
Photo Credit: Iurii Vlasenko / Shutterstock
- Current price premium (%): +26.2%
- Current price premium ($): +$8,380
- Current price: $40,346
- Original price forecast: $31,966
5. BMW 5 Series
Photo Credit: RoClickMag / Shutterstock
- Current price premium (%): +26.1%
- Current price premium ($): +$10,788
- Current price: $52,165
- Original price forecast: $41,377
4. Toyota 4Runner
Photo Credit: lzf / Shutterstock
- Current price premium (%): +25.3%
- Current price premium ($): +$8,864
- Current price: $43,932
- Original price forecast: $35,068
3. Honda Pilot
Photo Credit: Bandersnatch / Shutterstock
- Current price premium (%): +24.7%
- Current price premium ($): +$7,860
- Current price: $39,653
- Original price forecast: $31,793
2. Subaru Crosstrek
Photo Credit: Jfern Visions / Shutterstock
- Current price premium (%): +24.3%
- Current price premium ($): +$5,994
- Current price: $30,683
- Original price forecast: $24,689
1. Acura MDX
Photo Credit: Andrew Zaikovskyi / Shutterstock
- Current price premium (%): +22.8%
- Current price premium ($): +$8,315
- Current price: $44,777
- Original price forecast: $36,462
