Used car prices

[bob26]

I bought used Lexus RX-350 in 2016. It was a 2015 CPO model with 17K on it. Paid 39K. I am getting ready to get another one. Started to look for a 1-year-old CPO RX-350. Ready to travel anywhere to pick it up. Everything that I see is over 50K (more like 55K). Did the used car prices really went up 40% in the past 10 years? Or is it just this model?

[jebmke]

I haven't kept track of them but for a while, used car prices went up a lot and were a significant contributor to the reported inflation rate.

I seem to recall this car may be made in Canada. Regardless, I am assuming that car pricing is being propped up right now due to tariffs (current or threatened). I was thinking about replacing my aging RAV4 but have tabled that option right now. My car, while it is old (2008) runs fine and does the job.

[MorgansRun]

There was a recent CarEdge Youtube video and they said for some cars (RAV4), buy new is a better buy that buying 1-3 years old...especially taking depreciation into account.

[flyingcows]

Depends on the brand too, used prices for slightly used Honda and Toyotas are almost comical and sometimes more expensive than buying a new one. Not sure about Lexus

[WonderWander]

New car prices have gone up up significantly ~ 36% since 2016 (according to https://www.statista.com/statistics/274 ... ed-states/) and used car prices are generally a function of new so they have gone up as well.

Lexus has also been dealing with low inventory since the pandemic and this means used Lexus prices are still quite high. Rather than buy a used CPO, you might consider a new Lexus as it will probably be comparable price wise. Ive actually seen used Lexus/Toyotas listed for more than the new!

[JR52]

I bought a new RX 350H Premium at 5% off MSRP but the gas models you are looking at were offered at 8% under MSRP with a broker. The gap between CPO and new was small enough for me to not even seriously consider CPO.

[FinIndyGal]

Clark Howard just talked about used car prices on his show yesterday.
https://www.youtube.com/watch?v=IDMvpVeryhU
21:46 - When Will Used Car Prices Go Down?

[hoofaman]

I bought used Lexus RX-350 in 2016. It was a 2015 CPO model with 17K on it. Paid 39K. I am getting ready to get another one. Started to look for a 1-year-old CPO RX-350. Ready to travel anywhere to pick it up. Everything that I see is over 50K (more like 55K). Did the used car prices really went up 40% in the past 10 years? Or is it just this model?

I only buy used when I can save 50-70% for a car that's 3-5 years old, doesn't seem like your saving much vs new...maybe a new one could even be cheaper, check costco dealer price as a baseline

[finite_difference]

I bought used Lexus RX-350 in 2016. It was a 2015 CPO model with 17K on it. Paid 39K. I am getting ready to get another one. Started to look for a 1-year-old CPO RX-350. Ready to travel anywhere to pick it up. Everything that I see is over 50K (more like 55K). Did the used car prices really went up 40% in the past 10 years? Or is it just this model?

That’s just standard inflation. $39,000 in 2016 is worth $52,000 in 2025.

[delamer]

If your car’s price had gone up at the overall rate of inflation since 2016 (I used June), you’d be paying over $51,000 for the same used vehicle.

And it really isn’t the same vehicle, is it? Improved safety and other technology, undoubtedly.

So $50,000 to $55,000 sounds right.

[enad]

Unless something changed drastically between a 2023 and the 2025 models, it's funny that a new one appears to cost less than many used ones. Have you looked at a new model?

[Jack FFR1846]

Just 40% more over 10 years? yikes, that's nothing. For comparison, Stellantis (Chrysler, Dodge, jeep, Ram) has raised prices over 50% in the last 5 years. Kia/Hyundai, over 60%. If you want the least increase, go to Subaru. In the middle would be Toyota and Lexus. Others have pointed out that some cars don't depreciate enough to even consider used and some Lexus models fall into that. If you wanted an LC500, they depreciate a bit more than an RX, but that's a very different car.

[corn18]

I bought used Lexus RX-350 in 2016. It was a 2015 CPO model with 17K on it. Paid 39K. I am getting ready to get another one. Started to look for a 1-year-old CPO RX-350. Ready to travel anywhere to pick it up. Everything that I see is over 50K (more like 55K). Did the used car prices really went up 40% in the past 10 years? Or is it just this model?

That's about right per inflation data. At least your 9 year old car is also worth more, probably by the same percentage.

[gunny]

I buy older and look for models known to be reliable with lower mileage. I bought my 04 Lexus ES330 in 2016 and knock on wood still going strong; have only replaced worn out parts. (And IMO it's way nicer looking than the newer ones too)

[LISD]

I bought a 22 RX-350 with 22k miles for $39k last January (excluding taxes and DMV fees). Prices were decreasing when I purchased it, and continued to drop after I bought it.

https://fred.stlouisfed.org/series/CUSR0000SETA02

[vinhodoporto]

Did the used car prices really went up 40% in the past 10 years? Or is it just this model?

A 40% increase over the last 10 years is just inflation. About 3/4 of that was in the last 5 years.

I’m in the market for a used car for one of my kids by this summer. From casually starting to look it appears the market is slowing, which is not surprising given general consumer sentiment and how the market has been performing.

Used car prices are still weird. Some 3 year old cars are almost the same price as new, while other brands have more traditional depreciation. In general given the much better reliability of cars today and better information availability about specific brands and even specific cars vs decades ago I expect we won’t see a return to anything like the 50% depreciation in the first 3 years that used to be more common though.