Used Car Prices Expected to Hit Historic Lows in the Southeast This Summer
Used car prices have begun to drop due to the economic shutdown, but if consumers buy too soon they might overpay. Car inventory is due to flood the market, which will put pressure on dealers to lower prices. In the Southeast, car prices have already dropped 3.6%, but we expect prices to drop 8% to 15% or more with price drops hitting their lowest points in July - August 2020.
Buying too early could mean paying thousands more for the exact same car. Take advantage of massive price drops this summer by using CoPilot’s used car price tracking tool to be alerted whenever prices drop to their expected low-point.
Factors affecting used car prices
A combination of factors are resulting in used car prices falling*:
- Wholesale car prices are down significantly
- Record numbers of off-lease and rental vehicles will hit the market this summer
- New car incentives will have a corresponding impact on the used market
20 Used Cars With the Biggest Upcoming Price Drops
To prepare for the expected price drops, we used our proprietary data to predict which makes and models will have the biggest price drops. These cars are expecting price drops of a minimum of 13% with some reaching 21%. Topping off the biggest expected price drops are the 2016 Dodge Challenger and the 2016 Mercedes-Benz S-Class, which already have current price drops of over 7% since March 1st and are expecting drops of nearly 20% or more.
Quite a few luxury brands such as BMW, Audi, and Infiniti are represented with expected price drops of over 14%. If you’re undecided about which car you want to buy, check the list below for the cars in the southeast with the biggest expected drop in price:
Expected Used Car Price Drops: Southeast
2016-2018 Models
March 2020 vs. June 2020
|
Vehicle |
Retail Price (Mar 1, 2020) | Retail Price (Current) | % Change | $ Change | Expected Lowest Price | Expected Price Change |
| 2016 Dodge Challenger | $27,076 | $29,731 | 9.81% | $2,655 | $23,827 | -21.81% |
| 2016 Mercedes-Benz S-Class | $53,089 | $57,255 | 7.85% | $4,166 | $46,718 | -19.85% |
| 2017 Ford Flex | $18,718 | $19,987 | 6.78% | $1,269 | $16,472 | -18.78% |
| 2017 MINI Countryman | $21,167 | $22,911 | 8.24% | $1,743 | $19,051 | -18.24% |
| 2018 Toyota Sienna | $24,464 | $25,109 | 2.64% | $645 | $21,039 | -16.64% |
| 2018 Land Rover Range Rover Sport | $69,235 | $73,806 | 6.60% | $4,571 | $62,311 | -16.60% |
| 2018 Toyota Sequoia | $44,962 | $46,802 | 4.09% | $1,840 | $39,567 | -16.09% |
| 2017 Cadillac ATS Coupe | $23,688 | $24,576 | 3.75% | $888 | $20,846 | -15.75% |
| 2017 BMW X4 | $30,463 | $32,009 | 5.08% | $1,546 | $27,417 | -15.08% |
| 2017 Audi A7 | $35,819 | $36,765 | 2.64% | $946 | $31,521 | -14.64% |
| 2018 Infiniti Q60 | $31,669 | $32,491 | 2.60% | $822 | $27,868 | -14.60% |
| 2018 BMW X2 | $29,967 | $31,320 | 4.51% | $1,353 | $26,970 | -14.51% |
| 2016 Lexus IS 300 | $22,800 | $23,329 | 2.32% | $529 | $20,064 | -14.32% |
| 2018 Ford Expedition Max | $43,485 | $44,404 | 2.11% | $919 | $38,267 | -14.11% |
| 2018 Jeep Wrangler Unlimited | $35,904 | $36,626 | 2.01% | $722 | $31,596 | -14.01% |
| 2016 Nissan 370Z | $22,501 | $22,952 | 2.00% | $451 | $19,801 | -14.00% |
| 2018 Dodge Challenger | $27,104 | $27,638 | 1.97% | $533 | $23,852 | -13.97% |
| 2017 Lincoln MKZ | $21,900 | $22,314 | 1.89% | $414 | $19,272 | -13.89% |
| 2016 Dodge Charger | $21,198 | $21,533 | 1.58% | $334 | $18,655 | -13.58% |
| 2018 Volkswagen Atlas | $26,864 | $27,258 | 1.47% | $394 | $23,641 | -13.47% |
20 Used Cars Whose Prices Have Already Dropped
The majority of price drops will occur in mid-July through the rest of the summer and early fall, but there are some cars that have already dropped in price. The makes and models identified here have experienced price drops ranging from 7% to 12% since retail prices in March 2020.
Surprisingly, pickup trucks make a large appearance on this list, which isn’t typical in other regions. CoPilot is not predicting major price drops for pickup trucks due to high demand and low inventory, but that is not the case in the SouthEast region. The 2018 Chevrolet Silverado 3500HD has already seen a 12.33% drop and the 2017 GMC Sierra has already dropped 9.57%. Despite seemingly large price drops, don’t expect trucks to drop any further.
Used Car Prices That Have Already Dropped: Southeast
2016-2018 models
March 2020 vs. June 2020
|
Vehicle |
Retail Price (Mar 1, 2020) | Retail Price (Current) | % Change | $ Change | Lowest Expected Price | Expected Price Change |
| 2018 Chevrolet Silverado 3500HD | $49,394 | $43,305 | -12.33% | ($6,089) | $45,442 | 4.33% |
| 2017 Hyundai Elantra GT | $13,289 | $11,461 | -13.76% | ($1,829) | $11,960 | 3.76% |
| 2016 Hyundai Elantra GT | $12,052 | $10,485 | -13.00% | ($1,566) | $10,846 | 3.00% |
| 2017 Nissan Versa Note | $11,408 | $10,029 | -12.09% | ($1,380) | $10,268 | 2.09% |
| 2017 Toyota Yaris | $11,829 | $10,459 | -11.58% | ($1,370) | $10,647 | 1.58% |
| 2017 GMC Sierra 2500HD | $47,289 | $42,761 | -9.57% | ($4,528) | $43,506 | 1.57% |
| 2016 Toyota Prius c | $14,942 | $13,409 | -10.26% | ($1,533) | $13,448 | 0.26% |
| 2017 Chevrolet Silverado 2500HD | $45,609 | $42,178 | -7.52% | ($3,431) | $41,960 | -0.48% |
| 2017 Ram 2500 | $38,461 | $35,608 | -7.42% | ($2,852) | $35,384 | -0.58% |
| 2016 Scion iM | $12,701 | $11,505 | -9.41% | ($1,195) | $11,431 | -0.59% |
| 2016 Ram 2500 | $37,251 | $34,561 | -7.22% | ($2,691) | $34,271 | -0.78% |
| 2016 Infiniti QX60 | $24,888 | $22,603 | -9.18% | ($2,285) | $22,399 | -0.82% |
| 2017 Ram 3500 | $42,572 | $39,590 | -7.01% | ($2,982) | $39,167 | -0.99% |
| 2016 Tesla Model S | $61,347 | $54,615 | -10.97% | ($6,732) | $53,986 | -1.03% |
| 2018 BMW X3 | $39,001 | $35,515 | -8.94% | ($3,486) | $35,101 | -1.06% |
| 2016 Toyota Prius | $17,741 | $16,160 | -8.91% | ($1,581) | $15,967 | -1.09% |
| 2018 Chevrolet Spark | $11,417 | $10,419 | -8.74% | ($998) | $10,276 | -1.26% |
| 2016 Land Rover Discovery Sport | $24,374 | $22,249 | -8.72% | ($2,125) | $21,937 | -1.28% |
| 2016 Land Rover Range Rover Evoque | $27,699 | $25,319 | -8.59% | ($2,380) | $24,929 | -1.41% |
| 2017 Chevrolet Volt | $17,854 | $16,327 | -8.56% | ($1,527) | $16,069 | -1.44% |
Brands With the Biggest Price Drops
In these market conditions, brands with high inventory will experience the largest price drops. This will be compounded by brands that have multiple sedan models. Sedans are expected to experience large price drops and brands such as Scion, Volvo, Kia, Mazda, and Acura offer multiple sedan models.
Brands with the Biggest Price Drops
2016-2018 models
March 2020 - June 2020
|
Brand |
% Change |
| Scion | -8.80% |
| Tesla | -7.28% |
| Volvo | -6.22% |
| Subaru | -5.75% |
| Land Rover | -5.46% |
| Hyundai | -4.70% |
| Kia | -4.70% |
| Acura | -4.61% |
| Mitsubishi | -4.49% |
| Mazda | -4.33% |
| Honda | -4.30% |
| BMW | -3.68% |
| Toyota | -3.52% |
| Lexus | -3.50% |
| Chrysler | -3.45% |
| Nissan | -3.42% |
| Audi | -3.24% |
| Ford | -2.97% |
| Volkswagen | -2.86% |
| Cadillac | -2.79% |
| Chevrolet | -2.78% |
| Dodge | -2.66% |
| GMC | -2.66% |
| Lincoln | -2.42% |
| Mercedes-Benz | -2.27% |
| Buick | -2.17% |
Used Car Price Drops by Segment
Currently, biggest price drops are coming from minivans and hatchbacks across all makes and models with minivans and hatchbacks dropping 5.2% since March. As mentioned earlier, we expect the largest price drops to come from sedans, but we anticipate those drops to reach the bottom in mid-July. Sedans have seen a small drop of 3.6% since March. Trucks are seeing the lowest price drops of 2.8% and we do not anticipate that number to change in the future.
Price changes by used car segment
2016-2018 models
March 2020 - June 2020
| Segment | % Change |
| Minivan | -5.20% |
| Hatchback | -5.10% |
| Wagon | -4.50% |
| Exotic | -4.50% |
| Crossover | -3.90% |
| Sedan | -3.60% |
| SUV | -3.40% |
| Cargo Van | -3.40% |
| Truck | -2.80% |
| Van | -2.60% |
Summer 2020 is likely to be the best time to buy a used car this decade
With multiple market and economic factors impacting the used car market simultaneously, CoPilot expects this summer to be the best time to buy a used car this decade. Since prices are likely to shift rapidly as the market continues to correct, timing will be much more important than it normally is when car shopping - missing the ‘sweet spot’ by even a single week could end up costing you thousands of dollars on some models. To help you stay up-to-date with the best deals, we built a tool to help track the large price changes we’re expecting this summer. Most importantly, it will alert you whenever used car prices have reached their lowest point so you know you’re getting the best deal possible.
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