Used Cars Under $20,000 Are Disappearing. And The Numbers Are Brutal

A new study finds that shoppers now have to look at much older vehicles to find the same kind of deals that were common in 2019.

$20,000 Used Car Disappearing

Photo by: Jeff Perez / Motor1

Jeff Perez

By: Jeff Perez

Aug 12, at 3:34pm ET

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If you’re shopping for a relatively modern used car with a $20,000 budget—good luck. Even looking at online listings, you've probably already noticed that your money isn’t going nearly as far as it used to, and a new study proves that that is indeed the case.

According to iSeeCars, the average three-year-old used car now costs $32,651. The study analyzed more than 11.4 million used vehicles sold between 2019 and 2026. That’s up $9,027, or 38.2 percent, from the $23,624 average in 2019.

But the bigger problem is how quickly the supply of affordable late-model cars has disappeared.

Hyundai Elantra

Hyundai Elantra

Photo by: Hyundai

Your $20,000 Doesn't Go Nearly As Far

In 2019, nearly half of all three-year-old used cars cost less than $20,000. In 2026, that number has dropped to just 11.4 percent. That means just one in nine three-year-old used cars now falls below the $20,000 mark. That represents a 76.9-percent decline from 2019.

And going a couple of years older doesn't completely solve the problem. Just 26.6 percent of five-year-old vehicles cost less than $20,000 today, compared with 69.2 percent seven years ago.

The age at which more than half of used cars fall below $20,000 has also shifted dramatically. In 2019, that happened with four-year-old vehicles. Today, shoppers have to look at seven-year-old cars before a majority of the market falls below the threshold.

Even The 'Affordable' Cars Are More Expensive

The price increases aren't limited to expensive SUVs and luxury cars, either. Some of the most popular mainstream models have seen enormous jumps in used-car prices. These mainstream cars had some of the biggest jumps:

Hyundai Elantra — $19,178 Average / +56%
Kia Sportage — $24,543 / +50.5%
Toyota Camry — $24,829 / +49.9%
Honda Civic — $23,771 / +44.7%
Ram 1500 — $40,060 / +42.5%

As expected, luxury and performance cars saw some of the biggest increases:

Porsche Cayenne — $88,387 / +75.7%
Porsche 911 — $230,273 / +74.0%
Mercedes-Benz G-Class — $172,781 / +72.8%
Mercedes-Benz E-Class — $52,271 / +68.3%
Acura TLX — $35,555 / +67.1%

There Are Some Exceptions

Not every used car got more expensive, though. Two models actually saw declines compared to 2016, coming from Tesla and Land Rover:

Tesla Model X — $62,689 / -17.0%
Land Rover Discovery Sport — $28,118 / -2.4%

The Land Rover Discovery Sport also got slightly cheaper, while several other models—including the Mazda CX-9, Tesla Model S, Volvo XC90, Nissan Murano, Chevrolet Malibu, and Ford Edge—recorded price increases of less than 10 percent.

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Still, those are exceptions to a much larger trend. For the most part, the days of the reasonable $20,000 used car are long behind us.

Motor1’s Take: Unless used-car prices come back down or household purchasing power (somehow) catches up, the study suggests that more Americans will have to choose between spending more money or driving something considerably older.

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Source: iSeeCars

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