In 2024, Southern California drivers are paying an average of $13,984 for a typical 10-year-old car, reflecting a staggering 53% increase since 2014. This price ranks as the fourth-highest in the nation, with specific regions showing notable trends. For instance, Fresno's average price for a similar vehicle is $13,325, marking a 41% increase, while the Bay Area averages $13,283 (46% gain) and San Diego sits at $13,098 (44% gain) [9978473c].
The surge in prices is attributed to a shift in consumer behavior, as many are opting for older vehicles due to the high costs associated with new cars. Nationally, 23% of used car sales are now for vehicles that are 10 years or older, a rise from 17% in 2014. Sacramento has experienced the second-largest increase in the market share of older cars, climbing from 14% to 26% over the same period [9978473c].
In comparison to other cities, Miami has the highest average price for a 10-year-old car at $14,616, while Norfolk, Virginia, offers the lowest at $10,487 [9978473c]. This trend reflects broader market dynamics where consumers are increasingly turning to used vehicles as new car prices remain prohibitively high. The average age of vehicles on the road continues to rise, with the average vehicle age in the U.S. now at 12.6 years, as reported by S&P Global Mobility [6ecd10bd].
The increase in vehicle age and the rising prices of older cars are also linked to the recovery of new vehicle sales post-pandemic, which are expected to reach around 16 million in 2024. As more new vehicles enter the market, it is anticipated that the average age of vehicles will stabilize, although the demand for older models remains strong [6ecd10bd].
As automakers pivot towards producing more affordable electric vehicles, the market for used cars, particularly those that are older, is expected to remain robust. This shift in consumer preference highlights the ongoing challenges in the automotive market, where affordability continues to be a significant concern [9d60d9a5].