Experts Say This Is the Ideal Age for Your Next Used Car
Experts reveal the best age for a used car to save money and avoid high repair costs.
POLICY WIRE — Washington, D.C. — Experts suggest that a six-year-old vehicle offers the best balance of value and reliability for buyers seeking a used car.
A recent analysis by Bumper, a vehicle history platform, found that cars from 2020—now six years old—are in a stable phase of ownership, with lower repair costs and slower depreciation compared to newer models.
The study highlighted that depreciation drops significantly after the fifth year, with average repair costs stabilizing between years six and seven before rising again in year eight. Meanwhile, auto loan rates have hit 20-year highs, making it more expensive to finance a used car than in previous years.
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Used cars are typically $23,000 cheaper than new models, according to KBB data. However, rising gas prices and inflation have made saving on vehicle costs more critical for consumers. Gas prices remained above $4 per gallon for the first time in August, and auto loan rates have increased by nearly two percentage points since 2022.
Analysts warn that tariffs and supply chain issues could further push up used car prices. With the Federal Reserve raising interest rates, borrowing costs are expected to remain high in the near term.
Reporting by Policy-Wire (PW)
