Alternative-fuel & smaller vehicles lead used-car price hikes
In an effort to save at the pump, consumers these days are shelling out more to get alternative-fuel and smaller vehicles, spending thousands more for these rides than they were a year ago.
According to an iSeeCars.com analysis of nearly 2 million sales of 1- to 5-year-old vehicles in May, overall used-car prices were up 16.9% year-over-year, but some models were seeing increases two or even almost three times as high as that bump.
Topping the company’s list of 10 used cars with the largest price increases last month was the Hyundai Sonata Hybrid, whose average price was up 47.8% from May 2021. It was followed by two electrics: the Nissan LEAF, which saw a 41.4% uptick, and the Tesla Model S, in third with a 39.0% increase.
In fact, six of the 10 vehicles on the list were either hybrids or electrics.
Other hybrids included the Toyota Prius Prime (fourth, with a 38.0% uptick), Toyota Prius (No. 5, with a 36.3% increase) and the Toyota Avalon Hybrid (No. 9, up 31.9%).
“Hybrid vehicles are in high demand due to soaring gas prices, with the hybrid category as a whole increasing in price by 32.1 percent,” iSeeCars executive analyst Karl Brauer said in the analysis. “Hybrid sedans have seen a resurgence in popularity after falling out of favor as consumers previously embraced hybrid SUVs due to their more affordable price and fuel-efficient drivetrains.”
As for the two electrics on the list, there is a bit of irony to the LEAF coming in second with such a strong price spike.
“The price increase for the Nissan LEAF, which was once the highest depreciating car on the market, is likely due to the surge in gas prices as well as the heightened desirability for the redesigned 2018 model that offers increased range and is now coming off lease to enter the used car market,” Brauer said.
“Meanwhile, demand for used versions of the Model S waned in recent months as consumers embraced the more affordable Model 3 and the Model X SUV,” he said. “But the long wait times for new versions of the Model S, which include March 2023 at the earliest for the base model, has driven consumers to the used market.”
Of the four gas-powered vehicles on the list, two are subcompacts: the Kia Rio car that had a 32.9% price uptick and placed eighth, and the Fiat 500x subcompact SUV that finished 10th with a 31.6% uptick.
The other two gas vehicles were luxury models, with the Mercedes-Benz G Class at No. 6 and up 35.7% and the BMW 3-Series at No. 7 and up 34.4%.
Offering some overall commentary, Brauer said: “Small cars have become the only affordable used car option for a growing segment of the population, and their price increases reflect the high demand these otherwise low-demand vehicles have experienced in recent years.”