Coronavirus Impact on Used Cars: Car Deals to Look For
The global impact of COVID-19 is apparent in the world. As the economies of the world came to a grinding halt, it was only natural the car industry would affected by the pandemic as well.
For the latest information on the COVID-19 pandemic, make sure to check the World Health Organization website.
iSeeCars has released a study that highlights the impact of the Coronavirus pandemic on used cars. More specifically, the study shares data on 15 popular models that have seen the greatest slow down in the past two months. The study analyzes over 1.8 million cars for sale in February and March 2020 and the percentage of dealer stock that sells within 30 days. Consequently, the slowdown in the sales of these cars presents a unique price negotiation opportunity for buyers in the market for used cars.
Tesla Model 3
Average price: $41,911–$45,361
The Tesla Model 3 is the car that experienced the highest slowdown on the list. The Model 3 sold 25 percent less in the used car market in the given period. Tesla’s smallest offering is usually in high demand but also commands a higher price tag which could be one of the primary reasons for the drop in sales of the electric car. In addition, its depreciation is also the least among the cars on the list. The average price of a one-year-old Model 3 is $45,361 while over a period of the next two years it loses only $3,500 of its value. Anyone with their heart set on the Model 3 should look at this time to bag one and negotiate hard on the price and deals.
Toyota RAV4 Hybrid
Average price: $24,334–$32,368
Toyota cars are always in demand in the used car market thanks to their bulletproof reliability. In 2019, Toyota couldn’t keep up supply to match the demand of the RAV4 Hybrid. So it is no surprise that dealers lapped it up when it came on to the used car market. But due to the current situation, the sales of used RAV4 Hybrids have dropped by almost 21 percent. If you were eyeing a hybrid SUV or the RAV4 now is a good time to approach your used car dealer with your idea of an ideal purchase.SEE ALSO: 2019 Toyota RAV4 Hybrid Review
Average price: $31,077
The car with the third-highest slowdown in sales is the Volkswagen Atlas, which lost over 19 percent sales in the past two months. If you are looking for a mid-size, three-row SUV with an attractive price tag, high safety ratings and room to bargain some more, the VW Atlas might just be up your alley. Plus, the Atlas made its debut in 2018 so it’s yet to come into the three-year-old bracket which means no matter which one you go for, chances are it will be in good nick.
Mitsubishi Eclipse Cross
Average Price: $17,450
The Mitsubishi Eclipse Cross is one of the most affordable cars on the list and probably the most affordable crossover here. With an average price of $17,450 and a sales drop of 19 percent, you will likely find plenty of dealers who want to clear their Mitsu stocks. This should help you find deals that suit your needs.
It is powered by a 1.5-liter, turbocharged four-cylinder engine. Though it comes with a CVT transmission only, each trim does come with optional AWD.
Tesla Model X
Average price: $70,162–$88,114
The Tesla Model X is the most expensive car 0n this list. And despite the steep asking price, the Model X is quite a popular model among used car buyers. In addition, Teslas tend to hold their value better than other cars. According to the study, Model X has lost 17.5 percent of its sales in the period. The slowdown will see dealers offering better deals on the Model X.
Another point to note here is that the demand for Model X is likely to decrease with the new Model Y crossover now on sale. This makes the Model X a high-risk vehicle for used car dealers. And you can push for a better deal on the Model X that works in your favor, provided you are willing to shell out over $70,000 for an electric crossover.
Average price: $7,692–$11,962
The smallest car that Chevrolet offers has seen a sales slump of a little over 17 percent. Though there are more luxurious and better-equipped options out there, for $10,000 for a three-year-old car, the Spark is not an easy package to beat.
Prefer a new one? The Spark is the cheapest new car for 2020, starting at a little over $14,000 for a base model.SEE ALSO: Top 10 Cheapest New Cars to Buy
Average price: $16,399–$24,390
The Toyota RAV4 is one of the best selling cars in the US by far, and by consequence one of the best-selling cars on the used car market as well. So if you’ve been eyeing the RAV4, now is the time to get the checkbook out. The ever-popular crossover saw a sales slowdown of 16.8 percent, which we admit is not that high. But it is enough to warrant dealers to offer you deals on the RAV4 on their lots.
Apart from bulletproof reliability, the RAV4 also offers a comfortable interior, ample cargo space and convenience features that will not leave you feeling shortchanged. It also has one of the best safety records in its segment. But bear in mind that the RAV4 you will get will be the older generation, another reason to bargain with the dealer for added discount or benefit.
Average price: $19,727
Another popular Toyota on the used car market is the CH-R. This quirky crossover is powered by a 2.0-liter four-cylinder engine making 144 hp and 139 lb-ft of torque. The CH-R is 8th on the list and has experienced a slump of 16.8 percent. The CH-R is also a relatively new car in the market and will appeal to the younger buyers looking for a deal on their first car.
The only downside if any could be the fact that the CH-R comes with a CVT gearbox and FWD only.
Lexus GX 460
Average cost: $29,236–$47,830
The Lexus GX460 is the only luxury car on this list. Apart from being the only luxury car, it is also the only true off-roader on the list as well. With a sales slump of 16.7 percent and a relatively high cost of $37,420 for a three-year-old vehicle, dealers will likely be offering lucrative deals on their inventory.
For the money, you get a 301 hp, 4.6-liter V8 engine, impeccable off-road manners, a luxurious cabin and bulletproof Toyota reliability. If you want a luxury off-roader on a budget, it doesn’t get any better than the Lexus GX.
Average cost: $17,670–$21,688
Honda HR-V stands at number 10 on the list with a sales slowdown of 16.6 percent. Although it is among the less popular models on the used car market, it is still a viable choice for anyone looking for a sub-compact crossover.
Now, due to the current slowdown, it is likely that dealers will be offering a decent discount on the HR-V. If you are looking for one, try to negotiate an upgrade in equipment or to a higher trim.
Average cost: $19,003–$34,494
One of the most popular mid-size SUVs in the North American market and the chief rival of the Toyota Highlander, the Honda Pilot trumps its fellow Japanese competitor in size and possibly versatility.
If you want a reliable mid-size SUV with the capacity to move house in a single trip, Pilot is the SUV to pick. It gets a V6 engine with ample power, plus rear entertainment in the higher trims, and is as reliable as a stone. With a 16.2 percent slump in sales, you can bargain for a deal that fetches you a high-trim Pilot with the family-friendly entertainment option plus the in-cabin PA system.
Average cost: $22,561–$30,269
The Toyota Highlander is the one true rival of the Honda Pilot, even in the used car market. The Highlander sells in higher numbers compared to the Honda Pilot, so this one could be a little harder to negotiate on the price, even with a 16 percent sales slump.
The Highlander received a generation just this year and since you will be getting the old model only, you could use that fact to swing the deal in your favor. We suggest you go for the V6-powered trims rather than the four-cylinder powered versions.
Average cost: $12,812–$19,404
The Honda Civic is undoubtedly one of the most popular sedans out there. Civics also do incredibly well in the used car market and retain their resale value for a lot longer than other cars. That is why prices are usually non-negotiable. But not anymore.
With a sales slump of almost 16 percent, dealers will likely be looking at getting rid of their old inventory. So you could try and negotiate the price to get a better deal. With the current generation now five years old you will likely get a great deal of around $15,000.SEE ALSO: 2020 Honda Civic vs 2020 Toyota Corolla Comparison
Average cost: $18,974–$33,573
The quintessential minivan, the Honda Odyssey is 14th on the list of 15 cars and saw a sales slump of 15.8 percent. It is a popular minivan among large families and for good reason. It not only has a fantastic safety rating but is also the most versatile with Magic Seats and a foldable middle row. Plus, it gets systems like Cabin Talk, adaptive cruise control and radar-guided safety systems.
Anyone looking for a minivan should definitely give this one a look especially now as sales are in a slump and the prices are likely to be lower.
Average cost: $16,752–$26,571
The CR-V is one of the most popular SUVs in its segment. A lot of it is down to the reliability but it is also thanks to the balanced package that is on offer. The CR-V is also the 15th on the list with a slump of 15.7 percent.
The CR-V recently received a facelift which should aid in getting a better deal at the used car dealer. Yes, the downside will be that the safety tech was not standard on all trims but if you opt for a trim that is above the base, you should be fine.SEE ALSO: First Drive: 2020 Honda CR-V Hybrid Review