(iSeeCars) — Used car prices have increased as a result of changes in consumer behavior, supply chain issues, and other effects of the pandemic; however, household incomes and wage growth have not grown at the same rate.
According to the latest iSeeCars.com analysis, these used car price increases have resulted in a 26.7% drop in used car affordability from August 2019 to August 2022.
Used Cars That Have Dropped the Most in Affordability in Each State
iSeeCars determined the used cars that have had the most significant decreases in affordability in each state.
| Used Cars That Have Dropped the Most in Affordability in Each State | ||||
| State | Used Car Model | % Above Used Car Affordability Threshold, August 2022 | $ Over Aug 2019 Used Car Price | Avg 3yo Used Car Price Aug 2022 |
| Alabama | Toyota Camry | 40.3% | $11,164 | $27,720 |
| Alaska | Jeep Cherokee | 3.7% | $7,918 | $29,563 |
| Arizona | Volvo S60 | 29.5% | $13,676 | $32,762 |
| Arkansas | Jeep Compass | 36.4% | $11,758 | $26,256 |
| California | Toyota RAV4 Hybrid | 27.6% | $14,965 | $39,691 |
| Colorado | BMW 3 Series | 33.5% | $15,586 | $40,231 |
| Connecticut | Ford Mustang | 34.4% | $16,020 | $41,242 |
| Delaware | Chevrolet Traverse | 45.1% | $15,436 | $37,783 |
| Florida | Nissan LEAF | 55.5% | $23,418 | $35,919 |
| Georgia | Toyota Prius | 36.4% | $13,836 | $33,254 |
| Hawaii | Dodge Charger | 44.7% | $20,634 | $44,995 |
| Idaho | Subaru Legacy | 44.7% | $17,957 | $35,231 |
| Illinois | Volvo S60 | 35.8% | $15,961 | $35,922 |
| Indiana | Honda Accord | 28.9% | $11,806 | $29,637 |
| Iowa | GMC Terrain | 30.0% | $11,538 | $31,236 |
| Kansas | Honda Accord | 29.9% | $10,915 | $30,513 |
| Kentucky | Volkswagen Tiguan | 40.1% | $12,977 | $28,527 |
| Louisiana | Volkswagen Tiguan | 47.2% | $11,977 | $28,093 |
| Maine | Honda CR-V | 29.9% | $11,221 | $30,832 |
| Maryland | Audi A6 | 37.3% | $19,637 | $45,361 |
| Massachusetts | Chevrolet Camaro | 22.9% | $17,407 | $40,366 |
| Michigan | Toyota Camry Hybrid | 45.2% | $14,561 | $33,768 |
| Minnesota | Ford Mustang | 37.4% | $17,945 | $39,133 |
| Mississippi | Jeep Compass | 46.3% | $10,663 | $26,106 |
| Missouri | Honda Accord | 35.0% | $12,954 | $30,597 |
| Montana | Honda Civic | 19.4% | $10,441 | $27,661 |
| Nebraska | Honda Accord | 28.3% | $12,798 | $31,405 |
| Nevada | Toyota Prius | 29.4% | $11,038 | $31,425 |
| New Hampshire | Chevrolet Traverse | 11.6% | $13,162 | $36,173 |
| New Jersey | Audi A6 | 42.3% | $20,304 | $46,539 |
| New Mexico | Toyota Camry | 48.2% | $13,882 | $29,308 |
| New York | Ford Mustang | 26.3% | $13,753 | $34,385 |
| North Carolina | Toyota Camry Hybrid | 37.5% | $12,994 | $31,213 |
| North Dakota | Toyota RAV4 | 41.5% | $13,088 | $34,478 |
| Ohio | Nissan LEAF | 48.4% | $20,193 | $33,845 |
| Oklahoma | Honda Accord | 42.9% | $11,527 | $29,232 |
| Oregon | Nissan LEAF | 34.7% | $21,762 | $35,325 |
| Pennsylvania | Volvo S60 | 43.4% | $14,936 | $36,225 |
| Rhode Island | Chevrolet Traverse | 29.0% | $12,549 | $34,974 |
| South Carolina | Honda Accord | 43.4% | $12,974 | $31,171 |
| South Dakota | Honda Accord | 24.9% | $11,190 | $30,269 |
| Tennessee | Honda Accord | 37.2% | $11,976 | $30,005 |
| Texas | Volvo S60 | 36.0% | $12,018 | $33,358 |
| Utah | Toyota RAV4 Hybrid | 30.9% | $13,261 | $38,103 |
| Vermont | Toyota RAV4 | 16.4% | $9,970 | $30,891 |
| Virginia | Jeep Wrangler | 33.7% | $14,565 | $39,671 |
| Washington | Chevrolet Traverse | 30.4% | $14,990 | $40,258 |
| West Virginia | Jeep Compass | 35.2% | $9,177 | $25,381 |
| Wisconsin | MINI Countryman | 39.2% | $15,714 | $34,244 |
| Wyoming | Ford Escape | 17.1% | $7,363 | $27,975 |
- The used car that has dropped the most in affordability in the most states is the Honda Accord in eight states.
- The used car that is priced the highest above the used car affordability threshold is the Nissan LEAF in Florida at 55.5 percent.
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Methodology
iSeeCars calculated its Car Affordability Index for new and used cars monthly from April 2019 to August 2022. The Car Affordability Index was calculated as the ratio between median household income (obtained from the U.S. Census Bureau’s American Community Survey (ACS) one-year estimates and projected using the U.S. Bureau of Labor Statistics’ Earnings reports) and an idealized income for car payments, based on new cars’ and three-year-old used cars’ pricing. An index of 100 means the idealized income for car payments exactly matches household income; values above 100 mean household income is greater than the idealized income for car payments, while values below 100 mean household income is less than the idealized income. Car payments were estimated using Bankrate.com’s published auto loan interest rates and loan terms, and the idealized household income was estimated assuming car payments should be no more than 10% of a household’s annual income. The iSeeCars Car Affordability Index was calculated for new and three-year-old used cars both nationally, by state, and by the Census Bureau’s Metropolitan Statistical Areas (MSAs).
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