Brands with the biggest used car price premiums

Photo credit: SHERBOCK / Shutterstock

After more than a year of high inflation across all sectors of the economy, consumers have recently seen signs of relief. The overall growth rate of the consumer price index has stabilized in recent months after a strong rise in 2021 and early 2022. And the categories that have been in the headlines due to the rapid rise in prices are also cooling. Gasoline prices fell from $5.03 a gallon in June to $4.08 in August, house prices fell slightly from summer highs, and travel experts calculated that domestic air ticket prices are down 37% from prices this summer.

The used-vehicle market is another area where consumers are hoping to see inflation ease. The automotive industry has been particularly hard hit by supply chain disruptions resulting from the COVID-19 pandemic over the past two and a half years. Many factories were closed or operated at reduced capacity for periods of 2020 and 2021 due to the pandemic, while shortages of parts like microchips have been a chronic problem for the industry. As a result, automakers are producing millions fewer vehicles than before the pandemic, which has dramatically increased demand and prices for used cars.

Fortunately, as in many other categories, price increases in the used car market could take a turn, according to CoPilot. Back to normal index. The index compares current used vehicle values ​​to what they would have been without the momentum of the past two years. While CoPilot estimates that used cars have an overall price premium of 39%, the explosive growth in car prices over the past year has leveled off going into 2022. And recently, the Back to normal index saw its first three-month drop in the price premium on used cars.

However, some vehicle types still have particularly high price premiums. Given the declining supply of new vehicles, recent model years tend to have the largest price premiums. Vehicles 1-3 years old carry a typical premium of $11,964, more than a third more than the $8,431 premium for vehicles 4-7 years old, and more than double the premium of 5 $002 for vehicles 8-13 years old.

Price premiums also vary by segment. Many automakers targeted more of their new vehicle production to their best-selling vehicles, which helped keep premiums lower for popular types like SUVs (26% price premium), trucks (29%) and crossovers (35%). Coupes (50% premium), sedans (48%) and convertibles (48%) hold the highest premiums of all vehicle types.

In addition to age and type of vehicle, brands also show price variations. Unfortunately for consumers, no major brand category has escaped price increases: domestic brands by volume (like Ford), foreign brands by volume (like Hyundai) and luxury brands (like Tesla) all have average price premiums above 30%. But CoPilot Back to normal index shows that premiums are particularly high for some manufacturers. Foreign brands by volume offer the fewest offers to consumers. These brands have an overall price premium of almost 40% and represent 10 of the top 15 brands with the highest price premiums, including each of the top four.

To find the brands with the largest used car price premiums, CoPilot researchers analyzed the latest CoPilot data. Back to normal index. The researchers ranked used car brands by the highest price premium percentage as of July 2022. The price premium percentage is calculated using the differential between what a used car is typically worth and what it is really worth now, at retail.

Here are the brands with the largest used car price premiums.

Brands with the biggest used car price premiums

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15.Chevrolet

  • Price premium percentage: 41%
  • Average registration price: $32,505
  • Price change from month to month: $0
  • Brand category: National brands in volume

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14. Ford

  • Price premium percentage: 42%
  • Average registration price: $33,213
  • Price change from month to month: $189
  • Brand category: National brands in volume

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13.Pontiac

  • Price premium percentage: 43%
  • Average registration price: $10,052
  • Price change from month to month: $88
  • Brand category: National brands in volume

Photo credit: Devin Tolleson / Shutterstock

12. Scion

  • Price premium percentage: 43%
  • Average registration price: $13,625
  • Price change from month to month: -$35
  • Brand category: Foreign brands by volume

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11.Honda

  • Price premium percentage: 43%
  • Average registration price: $26,257
  • Price change from month to month: $289
  • Brand category: Foreign brands by volume

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10.Mitsubishi

  • Price premium percentage: 44%
  • Average registration price: $20,281
  • Price change from month to month: $104
  • Brand category: Foreign brands by volume

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9.Nissan

  • Price premium percentage: 44%
  • Average registration price: $24,390
  • Price change from month to month: -$69
  • Brand category: Foreign brands by volume

Photo credit: Anastasiia Gavriushina / Shutterstock

8. Mazda

  • Price premium percentage: 44%
  • Average registration price: $24,557
  • Price change from month to month: $318
  • Brand category: Foreign brands by volume

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7.Chrysler

  • Price premium percentage: 45%
  • Average registration price: $23,011
  • Price change from month to month: -$231
  • Brand category: National brands in volume

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6.Smart

  • Price premium percentage: 48%
  • Average registration price: $12,701
  • Price change from month to month: $301
  • Brand category: Foreign brands by volume

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5.Tesla

  • Price premium percentage: 48%
  • Average registration price: $70,374
  • Price change from month to month: -$631
  • Brand category: Luxury brands

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4.FIAT

  • Price premium percentage: 51%
  • Average registration price: $16,575
  • Price change from month to month: $70
  • Brand category: Foreign brands by volume

Photo credit: Roman Vyshnikov / Shutterstock

3.Hyundai

  • Price premium percentage: 53%
  • Average registration price: $22,849
  • Price change from month to month: $167
  • Brand category: Foreign brands by volume

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2.Kia

  • Price premium percentage: 55%
  • Average registration price: $24,353
  • Price change from month to month: $258
  • Brand category: Foreign brands by volume

Photo credit: Jonathan Jones

1.Volkswagen

  • Price premium percentage: 58%
  • Average registration price: $25,556
  • Price change from month to month: $104
  • Brand category: Foreign brands by volume

Detailed results and methodology

To find the brands with the largest used car price premiums, CoPilot researchers analyzed the latest CoPilot data. Back to normal index. The researchers ranked used car brands by the highest price premium percentage as of July 2022. The price premium percentage is calculated using the differential between what a used car is typically worth and what it is really worth now, at retail. Additionally, the researchers also calculated the average listing price and month-over-month (June 2022 to July 2022) price change for each brand.

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