Categories of Used Cars in the US - and Where to Buy Them
Used vehicle sales dominate the auto market, typically accounting for about three-fourths of U.S. vehicle sales each year. In other words, there are more than 3 times as many used cars sold in the US as new cars in a year.
In 2023, there were approximately 17,311 new car dealers and 130,284 used car dealers businesses in the United States
There are over 298 million vehicles on the road in the US in 2025 and they’re getting older. Vehicles had an average age of 12.1 years in 2021, and in 2023 the average age was 12.3 years. Trucks have remained relatively unchanged at around 11.6 years, but the average age of cars is approaching 13. Consumers hold on to their cars and trucks longer. Better car and truck reliability and vehicle technology are big reasons for the increasing age of the cars on the road. With the slowdown in new vehicle sales in recent years, the age of the average vehicle in the US will continue to creep upwards. About 92.1% of US households or 120.8 million US households have a car or truck."
Used and CPO, Certified Preowned, cars can be good deals for buyers because of depreciation, which is the vehicle’s loss in value. A new-car buyer pays a huge penalty when they drive off the dealer’s lot because the vehicle is no longer new. Depending on the model and various contributing factors, a vehicle’s value can decrease by 15-25% in the first year. Many savvy used car buyers take advantage of the first buyer paying off that initial significant depreciation and save themselves lots of money by buying a new-ish used car or CPO car.
Keep in mind these car categories apply to all makes and models of car from luxury cars to the most affordable small cars.
The market for preowned, or used cars, in the United States is vast, and offers a wide array of options for potential buyers. Understanding the different categories of preowned cars available can help purchasers make informed decisions based on their needs, preferences, and budget. There are many resources available to research the prices, and cost of ownership for used cars. We have included references to articles, tools, and web sites, to help you in your research. We welcome your suggestions and recommendations as well as your CarTales.
Be sure to look at the links at the end of this page for useful articles on where to find, evaluate, and shop for used cars.
Certified Preowned (CPO) Cars
Certified Preowned (CPO) cars are vehicles that have undergone a rigorous inspection and reconditioning process by the manufacturer or a certified dealer. These cars often come with extended warranties and other benefits, making them a popular choice for buyers seeking reliability and peace of mind. CPO cars are typically newer models with low mileage and a clean history, offering a balance between cost savings and quality assurance.
Off-Lease Vehicles
Off-lease vehicles are cars that have been leased by individuals or businesses and returned to the dealership at the end of the lease term. These cars are usually well-maintained and have relatively low mileage, as lease agreements often include maintenance and mileage restrictions. Off-lease vehicles are often sold at competitive prices and may still have some warranty coverage remaining, making them an attractive option for budget-conscious buyers.
Rental Cars
Rental cars are vehicles that were previously part of a rental company's fleet. These cars tend to have higher mileage due to frequent use, but they are typically well-maintained with regular servicing. Rental cars may be priced lower than other preowned options, offering a cost-effective choice for buyers who prioritize affordability over low mileage. (click for more on rental cars)
Trade-In Cars
Trade-in cars are vehicles that have been exchanged by previous owners for a new or newer vehicle at a dealership. These cars vary widely in terms of age, mileage, and condition, and are often sold as-is or with minimal reconditioning. Buyers looking for trade-in cars should be prepared to conduct thorough inspections and possibly invest in additional repairs or improvements.
Private Seller Cars
Private seller cars are sold directly by individuals rather than through dealerships. These transactions can offer significant savings, as there are no dealership markups involved. However, buying from a private seller requires due diligence, including verifying the car's history, condition, and authenticity. Private seller cars can range from well-maintained gems to vehicles with hidden issues, so careful evaluation is essential.
Salvage Title Cars
Salvage title cars are vehicles that have been deemed a total loss by insurance companies, often due to accidents, natural disasters, or theft recovery. These cars have been repaired and restored to a drivable condition, but they come with a salvage title indicating their past damage. Salvage title cars are typically sold at significantly reduced prices, but buyers should be cautious and consider the potential risks associated with their history and repairs.
As-Is Cars
As-is cars are preowned vehicles sold without any warranties or guarantees from the seller. These cars may have known issues or require repairs, and buyers accept them in their current condition. As-is cars are usually priced lower, but buyers should be prepared for potential repair costs and conduct thorough inspections before purchasing.
Classic and Antique Cars
Classic and antique cars are older vehicles that have historical significance, collectible value, or unique characteristics. These cars are often sought after by enthusiasts and collectors, and their value can vary greatly based on rarity, condition, and provenance. Buyers interested in classic and antique cars should be knowledgeable about the specific models and be prepared for potential restoration projects.
Luxury Preowned Cars
Luxury preowned cars are high-end vehicles from premium brands such as Mercedes-Benz, BMW, Audi, and Lexus. These cars offer advanced features, superior performance, and premium materials, often at a fraction of the price of a new luxury car. Buyers seeking luxury preowned cars can find well-maintained options with relatively low mileage, providing an opportunity to experience luxury without the steep depreciation costs.
Electric and Hybrid Preowned Cars
Electric and hybrid preowned cars are vehicles powered by alternative energy sources, such as electricity or a combination of gasoline and electric power. As the demand for eco-friendly transportation grows, the market for used electric and hybrid cars has expanded. These cars offer reduced emissions and fuel savings, making them an attractive option for environmentally conscious buyers. Preowned electric and hybrid cars can range from early models to more recent advancements, providing a variety of choices for those interested in green technology.
In conclusion, the preowned car market in the US offers a diverse range of options to suit every buyer's needs and preferences. Whether you're seeking the reliability of a certified preowned car, the affordability of a rental vehicle, or the uniqueness of a classic automobile, understanding these categories can guide you towards making a well-informed purchase.
Check the links below for more information. Happy car hunting!
(1) Cars.Com What are the Best Perks of Buying CPO Cars
(2) ConsumerAffairds.com Do People Buy More New or Used Cars
(3) CARS.COM Should You Buy AN Off Lease Car?
(6) National Auto Auction Association References
(7) Federal Trade Commission Consumer Advice - Used Cars