Now Is the Time to Buy a Used Car — Here's What's Worth Your Money

With used car prices plummeting over the past year — reaching their lowest point since 2021 — now is a prime opportunity to upgrade your ride.

This significant drop finally comes following a long-term supply crunch in the new vehicle market that was driving up used car values. Now, used vehicles are the top category driving down inflation, with a 10.1% drop in prices over the past year, according to CoPilot.

CoPilot CEO Pat Ryan explains that the supply of new vehicles has increased by about 50% since July 2023, providing consumers with more options to buy new instead of used and thus lowering used car prices. The average list price for a used vehicle is now $25,251 — 7% lower than a year ago.

"Buyers needing finance are shying away from the high APR used car loans, typically upwards of 14%, in favor of the often 0% APR given on new cars,” Michael Foote, the founder of Quote Goat, a site that helps car shoppers compare insurance rates, tells FinanceBuzz.

“Inventory is piling up at used car dealerships, bringing prices down and opening up some fabulous deals for cash buyers. With a glut of used cars on the market, it’s a cash buyer’s market with dealers more open to offers than ever before."

Certain segments of the used vehicle market have seen even steeper price drops in the past year. According to CoPilot, the average price of a 4- to 7-year-old SUV is $31,904, down 21% in a year; a 4- to 7-year-old truck is $32,899, down 17%; and a used electric vehicle is $37,851, down 14%.

Finding the right vehicle for your post-retirement life can be daunting with so many choices, though. We've compiled a list of fantastic used cars that deliver the most popular features and are reasonably priced — making them all smart money moves for car owners.

1. Hyundai Santa Fe

Courtesy of Hyundai

The Hyundai Santa Fe has plenty of features that retirees desire, such as lumbar support and active safety features, which can become more important as you get older.

The Santa Fe also has easy-to-use controls and touchscreens that can help you navigate while keeping your eyes safely on the road.

2. Honda CR-V

Courtesy of Car and Driver

Crossover SUVs can be great options for retirees because they’re easy to get into and out of. In addition, you might see the road better since you're sitting higher than you would in a sedan.

The Honda CR-V can be a good choice if you are looking for an affordable compact SUV.

3. Buick Encore

Courtesy of Car and Driver

Check out the Buick Encore if you want the benefits of a crossover SUV with more luxury-type finishes.

The Encore can also appeal to those who want driver assistance and other safety features.

4. Lincoln MKZ

Courtesy of Car and Driver

Lincoln no longer makes sedans, but there are still some older Lincoln sedans available on the used car market that can give you a luxury option without a luxury car price tag.

The Lincoln MKZ midsize car was noted for its reliability, which means fewer unexpected issues might pop up while you own the vehicle.

5. Ford Escape

Courtesy of Ford

The Ford Escape is a popular option if you want an SUV that isn’t too big to handle as you get older.

The Insurance Institute for Highway Safety (IIHS) gave both the 2020 and 2022 Ford Escape models Top Safety Pick rankings.

6. Subaru Forester

Courtesy of Car and Driver

Retirees who live in a winter climate might want a vehicle such as the Subaru Forester that can handle snow and ice.

The Forester has all-wheel drive as a standard feature, which can help you safely navigate winter weather and bad road conditions.

7. Toyota Corolla

Courtesy of Toyota

The Toyota Corolla has traditionally been one of the best-selling cars in the U.S.

That popularity means you should be able to find a used Corolla that fits your budget and meets your wants and needs.

8. Kia Telluride

Courtesy of Car and Driver

If you’re looking for a larger SUV, the Kia Telluride can be a good option.

The Telluride has a third row of seating, so you can drive with friends or travel with the grandkids. It also has plenty of storage space for all kinds of items you need.

Recent versions of this midsize SUV also have earned good safety ratings from the IIHS.

9. Honda Accord

Courtesy of Car and Driver

The Honda Accord is a solid sedan that might be more affordable than some of the SUVs on this list.

The Accord has a reputation for being a reliable car, which should give peace of mind to some drivers who are a bit uneasy about buying something used.

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10. Chrysler Pacifica

Courtesy of Chrysler

If you are in the market for a minivan, the Chrysler Pacifica might be worth a look.

Check out the 2021 and 2022 models on the used-car market, as they received Top Safety Pick Plus ratings from the IIHS.

11. Kia Soul

Courtesy of Car and Driver

The Kia Soul has a unique boxy design that is sure to attract attention.

The Soul is also a good choice if you’re looking for a compact SUV that has more of a car feel in traffic.

12. Volvo S80

Courtesy of All World Wheels

The Volvo S80 stopped production in 2016, but it is still a good option for retirees, especially if safety is their top concern.

Volvo is well-known for its safety features across its lineup, and the S80 is no exception. It earned a Top Safety Pick Plus rating from the IIHS in several of its final model years before being discontinued.

Remember that a great way to cut the cost of owning a used car is to save money on car insurance by shopping around for the best policy.

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Bottom line

Used cars can be a great option for retirees, especially if you need to supplement your income in retirement.

Just make sure you have some money saved in an emergency fund in case you encounter unexpected maintenance and repair issues with your used vehicle.

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