If you’re shopping for a used car, researchers have revealed the sweet spot for value.
Cars that are six years old - so right now a model from 2020 - have the best bang for your buck, according to a recent study from vehicle history platform Bumper.
“Years six and seven are the calmest stretch in the ownership curve,” the study noted. “After the year-five spike and before the year-eight cliff, the repair cost data shows a period of relative stability.”
By year four, the average used car loses around $26,000, a little over half its original value, the study found. In year five, depreciation slows to $1,000 -$1,500 a year.
Repair costs hit $761 in year five, plateau during years six and seven, and rise to around $1,079 in year eight, on average, Bumper said.
Typically, experts recommend buying a used car after four years to avoid the worst of depreciation, Bumper said.
In general, buying a used car instead of a new one is the cheaper option. Used cars are around $23,000 cheaper than new cars, according to August data from online vehicle marketplace KBB.
Americans are looking for more ways to save money amid an uncertain economy. Gas continues to be a major pain point for consumers. The average price of a gallon of regular gas remained above $4 every day in August for the first time ever, according to AAA.com.
The cost of gas was around a dollar higher in August 2026 than in August 2025, according to federal data.
Auto loan rates haven’t been immune to increases, either. They are near 20-year highs and average used car prices have skyrocketed since 2020, according to federal data.
The average rate for a 48-month used car loan was 7.5 percent as of September 16, or more than or nearly two percentage points higher than in September 2022.
Borrowing costs likely won’t go down in the coming weeks. The Federal Reserve raised interest rates for the first time in three years last week, a move that typically leads to higher mortgage and auto loan rates.
Trump administration tariffs on foreign trade partners and inventory shortages may drive up used car prices, too, Bankrate noted in an analysis last week.
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