This is the best SUV to buy used?

Think of a luxury SUV. What’s the first one you think of?

I will bet you my week’s salary that it wasn’t the Buick Envision.

Ok, no.

I’ll bet you a cup of coffee.

Which one did you think of? Let me know!

Key Takeaways

Don’t have much time? Here’s the summary of what we’re talking about:

• Consumer Reports released its first-ever list highlighting used cars

• It showcases the value used cars have obtained over recent years

• There are some surprises but it goes to show how expensive everything is

Listen to this episode on our podcast!

LONG READ

This is the used SUV to buy?

Once, buying a used car wasn't hard. You could find a decent ride for a modest price, and there was plenty of variety.

For years, used cars were a given. Such was our lack of interest in them that magazines such as Consumer Reports never focused on creating a "Best Used Car" list. 

Then came the pandemic and, with it, a radical change in how we viewed used cars. As the global logistic network collapsed, they became coveted. Demand skyrocketed, and the market reacted fast. 

In February 2021, the average used car price in the U.S. was slightly above $21,000. By the end of that year, it had surpassed $28,000, and it wouldn't slow down in the coming years.

In 2022, the average car price hovered around $27,500; in 2023, it did drop slightly and reached $27,000. 

This link has fascinating charts showcasing the price changes. Visually, it’s astonishing.

Everyone in the automotive market realized one thing: we shouldn't ignore the used car market.

More than that, it became a volatile ground for speculation.

We all remember those crazy times when a used car was much more expensive than any car you could find in a dealership.

After that, dealerships went crazy, but that's for another episode. 

Now, used cars are valuable options, and the automotive media, once ignoring the used car market, is trying to inform the consumer.

One of the most important consumer magazines has released its first "best used car" list, with some surprises.

That got us thinking: what will this list do for the entire automotive market?

Why didn't we think of this before?

In August 2024, Consumer Reports released its first-ever "best used car" list, and the world took notice.

It also brought one question to the forefront. Why hadn't we thought of this before?

Of course, the pandemic changed how we consume everything, not only cars but did we need such an event to change our view on used cars? 

In a word, yes. 

For decades, new cars were aspirational. We care about the latest and greatest, and used cars were seen more as necessary than a choice.

Plus, car companies don't want magazines reviewing old vehicles when they need to sell, sell, sell.

The pandemic not only changed prices, but it also changed our patterns. People drove less and realized that, perhaps, putting out a lot of money for a new car didn't make sense. 

Granted, this is the first-ever Consumer Reports list covering the most reliable used cars. Still, it's not necessarily the first magazine to do so.

J.D.Power has consistently released lists of their candidates for the most reliable used car, and this in 2018 has no surprises. It's everything you'd expect. 

The reality is that these topics are now essential to the consumer. Finding a used car is hard, not only because of the prices but also because of availability.

That's why this list was surprising. After all, Consumer Reports has existed in some way since the 30s. It took almost 100 years for it to create its first. 

It comes at the right time. In the beginning, we discussed how used car prices had skyrocketed. Now, times are changing. Most used car prices are dropping, and while this is a motive for celebration, it's also data that's worth analyzing. 

How are used car prices behaving?

The average price for a used car is $25,500, around 10% less than last year. Plus, used-car inventory has dropped as more people are buying them. 

But, one such factor is critical here: E.V.s. 

The reality is that E.V.s are losing many fans, and this applies to both new and used models. While sales keep growing, they have slowed down considerably, which has a direct consequence in the used car market.

People don't want to buy these anymore, so they're flooding the market, and prices are going to drop because of this. 

Much of it concerns Tesla's drastic changes in pricing (mostly in reductions) and how they impact resale value. It feels like a long time ago, but people only recently speculated on Cybertruck prices.

By the way, this is a fascinating database of how Tesla's pricing has changed. 

Another big reason is that federal tax credits are now also available on used E.V.s, which changes the game entirely. 

But there's one thing that stands out.

People are paying more attention to used gasoline-powered cars, and that's because E.V.s haven't won peoples' hearts just yet.

If E.V. fans in our podcast are willing to refute that, we can look at the list.

What does the Consumer Reports list say?

There's been enough preamble.

Let's examine the list. One of the most noticeable aspects is the pricing. Consumer Reports does a good job of budgeting. The magazine caps the pricing at $20,000, with some starting at $10,000. 

Here’s their entire list.

These are excellent prices, but finding them in real life is increasingly challenging.

Also, remember that the magazine wants to focus entirely on reliability. So, these might not be the most exciting options. However, for the price, they're meant to last long.

They are:

• Used cars under $10,000: 2017 Chevrolet Cruze

• Used cars under $15,000: 2019 Hyundai Elantra

• Used SUVs under $15,000: 2019 Honda HR-V

• Used hybrids under $20,000: 2021 Toyota Corolla Hybrid

• Used small SUV under $20,000: 2021 Kia Sportage

• Used hybrid SUV under $20,000: 2018 Toyota RAV4 Hybrid

• Used 3-row SUV under $20,000: 2020 Mazda CX-9

• Used luxury SUV under $20,000: 2020 Buick Envision

• Used pickup truck under $20,000: 2015 Toyota Tacoma

• Used sports car under $20,000: 2019 Mazda MX-5 Miata

I can already imagine many of our followers guessing which ranked on top. Moreover, there's something noticeable about this list. Or, rather, something is missing, and we'll get to that later. 

Are there any surprises? Well, yes, even from the start.

Three of the ten cars nominated on the list had the lowest owner satisfaction possible. One more had a 2 out of 5 ranking, which is surprisingly low. 

Let's take the Chevy Cruze. It ranks in the category basically because it's the only one you can buy for less than $10,000 (within C.R.'s rankings).

Though it has the lowest owner satisfaction rating on C.R. (1 out of 5), other sources, such as J.D. Power, rate this year as one of the best of the Cruze. 

The Elantra is no surprise, but with a 2019 model, one can't help but wonder if you'd be better off buying a 2017 Corolla, which has higher customer satisfaction and better reliability ratings. 

The list is almost predictable, with cars like the Kia Sportage, the Toyota RAV4 Hybrid and Mazda CX-9, which aren’t surprising.

Then, we jump to the best luxury SUV, and it's almost a headscratcher. 

The Buick Envision is their top choice. 

Buick isn't a brand that pops into your head when you think about luxury SUVs. But we researched other sources, and it has an excellent rating in Kelley Blue Book and J.D. Power. 

We dove more into the facts and saw that people love this car.

Not even the fact that it's produced entirely in China has thrown off all buyers.  And that's the surprising aspect. 

But, then again, the luxury SUV market in the U.S. is quite expensive. If we go back to the Consumer Reports list, we can see that most of them will always be out of range by a lot. 

The closest in the luxury sector could be Acura MDX, but going back a couple of years, starting in 2018. 

As far as the Miata goes, there's no doubt about it. It's hard to find a cheap, fun sports car that's not a Miata, but the Tacoma did surprise us.

Granted, the Toyota Tacoma is incredibly reliable, but the suggested model is almost 10 years old. So, was this the only model they could have thought of? Indeed, in a country that loves pickup trucks, there has to be another option. 

It turns out there isn't. At least, it's hard to find one that checks off all the boxes. 

The 2021 Chevy Colorado complies with the budget but has low reliability ratings. 

The same goes for the GMC Canying and Ford Ranger. These barely bottom out at $20,000, with some used models costing up to $29,000.

The only model with excellent reliability ratings is the Honda Ridgeline, but it's too expensive. So, when it comes to trucks, the options are quite limited, and that's — finding them in good condition, which is a challenge in itself. 

But it does teach us something. 

This is only the beginning

One might say that Consumer Reports really narrowed down the list by creating these caps, but there's a reason. 

It's not always a matter of capping your options at a certain budget or year. 

It's a careful balance. If you open your scope a bit, there are viable older options, but then there's financing. In the U.S., some restrictions apply, such as the car's age (limited to around 10 years) and mileage (usually capped at 150,000). 

Then, there are interest rates. 2024 has been particularly high, with used cars seeing up to 12%. That throws off a lot of potential buyers. No one is interested in paying so much for a used car, and in reality, most people are doing this because they need a vehicle. 

The reality is that we might not agree with the list or most of it. Some cars in it aren't our top choices, but buying any used car is challenging right now.

The interest has waned, and studies have shown that people keep their cars longer.

Then, there's the big elephant in the room. The list has no E.V.s in any category and only two hybrids.

There are many reasons for this, including price, but the reality is that E.V.s haven't lived up to reliability standards that we're used to.

Of course, this will change in time, but for now, the used car market, even the magazines handing out recommendations, is staying away from them. 

Consumer Reports courageously released this list. It was unexpected, and it definitely surprised everyone. 

While other magazines have done the same in the past, C.R. has always stuck to the new. So, times are changing. Then, there's the reality of it. The used market has undergone impressive, chaotic changes, and this list is valuable. 

We might disagree with or love it, but a reference to the real world is what more buyers need. After all, not everyone can buy a new car, so when it comes to the future, this is the kind of information we need.

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