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Best Cars To Buy When Prices Plummet

April 21, 2023

4 min Read

Written by David Nadelle

Edited by Cory Dudak

Aerial view of new cars of different brands parked in rows on a lot.

Bim / Getty Images

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For the first time in nearly two years, the average transaction price for a new vehicle tumbled to $48,008 in March, according to Kelley Blue Book (KBB). While this represents a decrease of 1.1% (about $550), from $48,558 in February, it’s still $1,784 more than a year ago.

The equally frustrating used car market has seen price declines over the past year, though costs remain high as well. While these trends are small, they are a positive step in the right direction. Like the hardships witnessed in the housing market, vehicle prices come down to supply and demand. Most experts predict that the automotive market will get healthier as the global semiconductor or chip-shortage continues to improve and as company inventories return to normal. It might take some time, but when the industry eventually turns around, eager consumers will need to know what cars to target.

The key may be to consider domestic brands when looking to buy a new car. As Kelley Blue Book noted, “You can easily find a new Chrysler, Jeep, Buick, or Volvo, though not necessarily a Toyota, Lexus, Kia or Honda.”

“Looking for something like General Motors or maybe Hyundai, Mazda, Buick — some of those still have slight price increases, but just not as dramatic as some of the other ones,” said KBB’s executive editor Brian Moody, per Autoblog. “Buicks, for example, are selling for roughly 2% below MSRP.”

TrueCar industry analyst Zack Krelle concurred. “There are possibly some opportunities on the domestic brand side where they have slightly more inventory than some of the import brands,” he said. “The domestic brands have a 30-, 40-day supply, which is still very, very low compared to historic levels.”

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When it comes to used cars, an iSeeCars report from March found that while prices are still higher than before the pandemic, overall they are down 4.7% since Sep. 2022 and 8.7% over the past 12 months. Ten models have dropped more than 16% in price over the past year and four models — Infiniti QX80, Nissan Armada, Land Rover Discovery, and Tesla Model 3 — have seen 12-month price decreases of more than 19%.

In general, used electric vehicles have become cheaper, falling 13.9% over the past year. Since September, the cost of used Tesla Model 3s has decreased by 21.5%. Given that the company has cut it price six times this year, you can expect used Model 3 prices to dip even more in 2023.

The biggest bargains can be found on vehicles that are higher priced to begin with; cars under $10,000 can only drop in price so much. But with money still far too tight, here’s a list of the best new cars under $20,000 and the best used cars and SUVs under $15,000, according to iSeeCars.

Best New Cars Under $20,000

The average price paid for a new non-luxury vehicle in March 2023 was $44,182, according to KBB. But there are plenty of great options for under $20,000, including Subaru’s Impreza, which got high marks from both KBB and iSeeCars.

Subaru Impreza – $19,795
Nissan Versa – $15,730
Kia Rio – $16,550
Kia Forte – $19,490
Nissan Sentra – $19,950

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Best Used Cars Under $15,000

For the frugal, there are plenty of used cars for under $10,000 like the 2015 Nissan Versa, the 2014 Chevrolet Sonic and the 2014 Kia Rio. However, if you can spare a few extra thousands, you can get yourself behind the wheel of some great Honda and Toyota models for under $15,000.

2014 Honda Civic – $14,978
2013 Honda Accord – $14,774
2014 Toyota Camry $14,749
2015 Toyota Corolla – $14,653
2014 Mazda MAZDA6 – $14,127

Best Used SUVs Under $15,000

If you’re looking for an SUV. You can easily find one for under $15,000, but, like used cars, you’re going to have to look for eight to 10-year-old models. iSeeCars recommended these five small and midsize crossover SUVs, with Subaru and Hyundai leading the way.