Tax Season Provides Relief for Used-Car Market

Used-car shoppers have faced a barrage of bad news lately, with a looming used-car shortage and prices that still remain higher than they were before the pandemic, but tax-season car sales may provide some temporary relief. According to Cars.com data, the average used-car list price hit a 32-month low in March, and used-car inventory is up, particularly among vehicles below $30,000. So, if you’re looking for a used car right now, you may have less of an uphill battle thanks to those sweet, sweet refund checks.

Related: Sub-$30,000 New Cars Are So Hot Right Now: Report

A Little Normalcy, As a Treat

The used-car market isn’t completely back to “normal” — inventory remains down by 400,000 vehicles compared to pre-pandemic levels — but it’s closer to normal than it’s been in a long time. As of March 2024, the average used-car price listed on Cars.com was $28,669, reflecting a year-over-year decrease of 5.1%. It’s also the lowest average used-car price since July 2021, when pandemic-era chip shortages and other supply chain woes were affecting new-car production and driving more shoppers to the used lot. Used-car inventory is up 4.7% year-over-year, as well, with much of that growth being in the sub-$30,000 price range.

Additionally, the average used-car mileage on Cars.com in March 2024 was down slightly by 924 miles from this time last year, coming in at 60,178 miles. This was driven largely by used cars listed for under $30,000, where the average mileage decreased 4,135 miles year-over-year, to 70,281 miles. As far as normalcy goes, however, used vehicles under $20,000 aren’t contributing much to that trend: Those vehicles still average three years older (8.6 years old in March 2024) and have roughly 24,800 more miles (93,000 miles) than in March 2019.

Used cars are also staying on lots for longer, with listings in all categories on Cars.com staying live for an average of 52 days in March. That’s up year-over-year, although we have to caution that there’s usually a bump in used-car availability that coincides with dealerships loading up on inventory in anticipation of tax-refund season. Our data backs this up, as dealerships’ listings on Cars.com increased by 7.6% between February 2024 and March 2024. Likewise, there’s a lot of demand out there, with used-car searches on Cars.com increasing by 10.4% compared to the average search volume in March 2019. So, if you’re shopping for a used car, you may want to shop around sooner rather than later while the pickins’ are good.

Popular Trade-In Values Are Up

While the average used-car value is down year-over-year, per Cars.com data from March, values for in-demand models have been trending upwards in the first quarter of 2024. There are a couple of things at play here. First of all, many owners are holding on to their cars for longer now, with the average age of cars on the road climbing to 12.5 years. Even new-car shoppers now wait an average of 6.5 years before trading in their vehicle, per our research from earlier this year.

Problem is, many of the vehicles most in demand right now are newer — especially cars that are 3 years old or newer. This is where pandemic-era shortages hit the used market the most, as there were fewer cars made during the past three years and thus, fewer leased cars coming back that typically fill out used-car lots.

Of course, some vehicles simply hold their values for longer, too. Many of the most searched used models on Cars.com have a long history that have built up a following over the years. Two models in particular — the Honda Accord and Toyota Camry — have long-standing reputations as affordable, reliable options for budget-minded shoppers and boast an average used-car list price of just over $20,000. Here are the top 10 most-searched used vehicles on Cars.com last month:

1. Ford F-Series

2. Chevrolet Silverado 1500

3. Chevrolet Corvette

4. Toyota Tacoma

5. Ford Mustang

6. Ram 1500

7. Porsche 911

8. Toyota Tundra

9. Honda Accord

10. Toyota Camry

SUV models are conspicuously absent from our top 10 most searched used-car list despite being the most popular body style that people search for; blame the sheer variety of SUVs on offer for that one. A lot of buyers are in the market for an SUV, but that market ranges from everything between hyper-luxury Rolls-Royce Cullinans and Lamborghini Uruses to budget-friendly Chevrolet Trax and Nissan Rogue models.

More From Cars.com:

• What Are the Best Used Cars for $20,000?
• Leased and Used Electric Vehicles Now Qualify for Federal Tax Credits
• Buying a Used Car? Here’s What You Need to Know
• Study: These 3-Year-Old Cars Are the Most Dependable
• Find Your Next Car

Check Your Trade-In’s Value

If you’re wondering if your specific car is in hot demand, Cars.com can help. Our new Your Garage feature lets you track both the trade-in and private sale value of your vehicles so you can see if now is a good time to get the most money for your car. If you’re ready to trade in your vehicle right now, check out our Instant Offer feature, which does exactly what it says: instantly returns an offer from a local dealership willing to buy your car based on its condition and mileage.

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.