It’s always best to shop around before making a purchase.
The transaction price of a new car is well over $30,000, which is a big bill pill to swallow. Used car prices are creeping upward, too. Many automakers shut down production early in the coronavirus pandemic, limiting the supply of new cars. However, as prices rise, not all used car sellers are the same. Some offer better deals than others, and a new study from iSeeCars.com lays out which places offer the best prices.
The publication analyzed over 8.5 million used cars sold in 2020, comparing prices of similar vehicles sold nationwide by online dealers, rental car agencies, and traditional car dealers. It discovered that rental car dealers, like Hertz, Avis, Enterprise, and others, offer the most significant savings, averaging $303 in savings than other sellers, or 1.6 percent below market value.
|Dealer Type||Avg Price to Market Value ($)||Avg Price to Market Value (%)|
|Rental Car Dealers||-$303||-1.6 %|
|Traditional Dealers||+$31||+0.2 %|
|Online Dealers||+$444||+2.4 %|
A traditional dealership has a price that’s slightly above market value at $32. However, it’s far below that of online dealers, like Carvana, which, according to iSeeCars.com, has car prices that are $444 more expensive on average. One reason for low rental car prices? Rental car companies purchase a high volume of cars at discounted prices, passing those savings onto the used buyer. Also, rental car companies are facing hardships with the virus.
While used car prices are likely lowest at a rental car dealer, not all makes and models are equal. ISeeCars.com dove deeper into the data, looking at the best places to buy some of the most popular vehicles. Rental dealers are popular for cars like the Chevy Equinox and Silverado, but customers could find better deals for the Ford Escape or Hyundai Tucson online. Those wanting a traditional dealership experience should look at the Ford Fusion or GMC Sierra for the largest savings. It’s always best to shop around before making a final decision regardless of the make or model you want.