CarGurus Study Identifies Cities with Highest & Lowest Used Retail Prices
CarGurus released a study Wednesday identifying the most affordable and most expensive U.S. cities in which to buy a used vehicle.
Topping the list of deal-friendly destinations is Miami, followed by Cleveland, Rochester, N.Y., and Detroit.
The site found Jackson, Miss., to be the most expensive used-vehicle city, followed by Seattle, Montgomery, Ala., and Little Rock, Ark.
CarGurus analysts said price differences between cities can be substantial. Relative to nationwide readings, used prices in Miami are on average 6.6 percent less expensive, while used prices in Jackson are 9 percent more expensive, marking a difference of 15.6 percentage points.
To find this information, CarGurus utilized its Instant Market Value (IMV) algorithm, which was recently updated to factor used-vehicle values in 139 different metro and rural areas across the country in an attempt to give users the most accurate view on prices in a specific market.
For this study, CarGurus aggregated local IMV data on millions of used vehicles listed for sale, and ranked the largest metro areas in the contiguous United States according to how prices in that market compare to the nationwide average.
CarGurus’ IMV calculation is determined by a proprietary algorithm that analyzes millions of vehcile listings daily, factoring make, model, year, mileage, trim, options, accident history and the specific location of millions of listings.
To rank cities, analysts compared how average prices in each metro area compare to the nationwide average. Metro areas are defined as the area 50 miles around the city center. Used vehicles from model years prior to 2000 were excluded from this study.
“Prices can vary substantially from city to city, and depending on where you live, it may pay to look beyond your ZIP code to find greater savings,” said Langley Steinert, founder and chief executive of CarGurus.
“At a minimum, understanding how an individual car listing compares to similar listings in the same market will help any car shopper make more informed, confident purchase decisions,” Steinert continued.
CarGurus’ Top 10 Most Affordable Cities to Buy a Used Vehicle
3. Rochester, N.Y.
5. Stamford, Conn.
6. Akron, Ohio
7. Buffalo, N.Y.
8. Toledo, Ohio
9. New York
CarGurus’ Top 10 Most Expensive Cities to Buy a Used Vehicle
1. Jackson, Miss.
3. Montgomery, Ala.
4. Little Rock, Ark.
5. Knoxville, Tenn.
6. Mobile, Ala.
7. Fresno, Calif.
8. Memphis, Tenn.
9. Wichita, Kan.
10. Lincoln, Neb.
For the complete list of cities, visit www.cargurus.com/press/assets/20130213-data.pdf.