It’s not a good time to be selling a used car.
Even with the supply of used cars on the decline, inflated interest rates have made the prospect of buying a used car — particularly one that requires a loan — pretty unappealing.Â
It’s no surprise then that the average value of a used car in the United States has declined 7.5% year over year from the third quarter (Q3) of 2023.
Still, some brands have fared far better than others in less-than-ideal conditions. We crunched the numbers to see who the winners — and losers — are in the used car market.
The superlative six: Rolls-Royce dominates while Tesla tumbles
Across the board, the value of used cars has decreased by about $2,200 from Q3 2023 to Q3 of this year, from $29,500 to 27,300. However, certain luxury brands including Rolls-Royce, Bentley and Ferrari have actually seen their values on the used car market increase over the last year.
Still, for the vast majority of automotive brands, their value on the used car market has declined over the last year. Maserati, Polestar and Tesla have seen the sharpest price declines.Â
A used Tesla sold for an average of $42,300 during the third quarter in 2023. During the same period this year, they sold for about $31,400 — wiping out over a quarter of its value.
What’s driving price declines for Tesla and Polestar vehicles is hard to say, but a decline in consumer interest in EVs this year may be a contributing factor.
Check out how different brands have fared in the market
Whether you’re looking to sell your car or buy a new (used) one, it can be helpful to know the pricing trend for the automotive brand you’re interested in.
Americans willing to pay for European refinement
Automotive brands aren’t the only way to look at trends in the used car market. Even on a national level, consumers are more willing to put up the cash for cars from certain countries over other ones. Car brands in England, Germany, and Italy have all maintained their value better over the last year than their American counterparts.
Across all of the countries, Swedish and American automotive brands have seen above-average declines in their value in the used car market over the last year. But, country alone may not explain the trend. More expensive cars, like many of the ones produced by English automakers, have held their value better than cheaper cars.
With the exception of Jaguar, every English automotive brand has maintained its value better than the overall used car market since the third quarter of last year.
Final thoughts
Whether you’re looking to buy or sell a used car, the biggest factory likely to drive prices are interest rates.Â
Data from Edmunds shows that used car interest rates have come down marginally over recent months, but they remain over 11%, on average. The high borrowing cost makes the prospect of buying a used car pretty unappealing, lowering overall demand in the market.
Despite the general trend, some automotive brands are still in demand. Luxury, European brands like Rolls-Royce, Bentley and Ferrari have all not only maintained their value over the last year — they’ve actually appreciated in value.Â
On the flipside, EV makers Tesla and Polestar have seen the average sale prices for their used vehicles drop drastically over the last year. If you already own a Model 3 that will probably come as unwelcome news, but if you’re looking to buy, now might not be a bad time. That is, if you can secure some better loan terms.
About the author
Elijah Nicholson-Messmer
Contributing Writer, Autoblog