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Steering Through Savings

Extreme Terrain Staff

Extreme Terrain Staff

 / Jul 25 2023
Steering Through Savings

How Falling Prices Shape Car Buying Decisions

In the past month, there has been a significant decrease in used car prices due to high interest rates and inflated retail prices, marking the largest drop since the onset of the COVID-19 pandemic. This substantial price decline led us to investigate whether Americans have become more inclined to purchase a used car this year. We also wanted to know if this trend might influence their thoughts about switching to electric vehicles (EVs).

Our survey of 1,010 vehicle owners uncovers the most important factors for Americans when buying a used car, the most popular payment methods for such purchases, and the vehicles people plan to buy in 2023.

Purchasing a Used Car in 2023

Key Takeaways

  • Nearly 1 in 4 Americans would consider trading in or replacing their current vehicle due to the drop in used car prices.
    • Ford owners are 29% more likely than Chevy owners to trade in or replace their current vehicle due to the drop in used car prices.
  • 1 in 5 Americans would consider adding another vehicle to their collection this year due to the drop in used car prices.
  • 24% of Americans would consider switching to a hybrid vehicle because of the recent drop in used car prices, compared to 14% considering a fully electric vehicle.
  • 1 in 3 Gen Zers said the recent drop in used car prices would lead them to consider switching to a hybrid vehicle.
  • How are Americans planning to pay for their vehicle purchases in 2023?
    • Financing with a down payment (59%)
    • Cash only (32%)
    • Credit from trade-in (22%)
    • Financing with no down payment (9%)
    • Credit card (8%)
    • Personal loan (4%)
  • Americans are 73% more likely to buy from an online platform when buying a used car versus a new one.
  • More than 1 in 10 Americans plan to purchase their next used vehicle through an online platform such as Carvana.
  • Besides re-purchasing another Ford, these are the top 3 brands Ford owners are interested in: Toyota (29%), Chevrolet (25%), and Hyundai (19%).
  • 86% of Jeep owners are interested in remaining brand loyal by purchasing another Jeep. However, nearly 2 in 5 also said they would be interested in a Ford vehicle.

Greener Shifts in the Pre-Owned Vehicle Market

Falling used car prices are influencing American car ownership trends, with a significant portion considering trading in their current vehicles or expanding their collection. An increasing number of Americans are also interested in transitioning to hybrid or electric vehicles. These trends are coupled with a shift toward digitalization, as many Americans now favor online platforms for purchasing used cars.


To investigate the impact of the shift in the used car market on purchase behavior, we surveyed 1,010 American vehicle owners.

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Fair Use Statement

The insights and information about the impact of used car prices on vehicle purchases provided by American Trucks are intended for noncommercial sharing. When sharing this content, please include a link back to the original page so readers can access our full findings.