Your $20,000 Budget Will Not Purchase Much in the Current Used Car Market | Carscoops

      If you're seeking options priced under $20,000, you'll find that your choices are severely restricted, whereas before the pandemic, there were many to select from.

      16 hours ago

      by Michael Gauthier

      Used car prices have increased significantly, with the average cost of a three-year-old vehicle now exceeding $32,000.

      Currently, only 11.5% of three-year-old vehicles are priced under $20,000, a sharp decline from 49.3% in 2019.

      Well-known models like the Honda Civic and Toyota Corolla have experienced substantial price hikes.

      If you're in search of an economical used car, you are going to need a fair amount of luck. Nowadays, it appears that the affordable options are either quite old, have high mileage, or both.

      We’re not alone in this observation; a recent study revealed that late model used vehicles priced under $20,000 have largely vanished. This marks a significant shift, as in 2019, 49.3% of three-year-old used cars were $20,000 or less, but that figure has now dropped to just 11.5%.

      More: Prices for Used Cars Just Increased, and It's Not Solely Due to Supply Issues

      Taking a closer look at the study, iSeeCars discovered that the average price of a three-year-old used vehicle has risen by 40.9% since the pandemic began. This indicates that the price has surged from $23,159 in 2019 to $32,635 in 2025. This increase of $9,476 highlights a serious problem regarding affordability.

      Much of this change might be attributed to the decline of affordable sedans. These vehicles were initially inexpensive and, consequently, even more affordable in the used market. However, many manufacturers have drastically reduced or completely removed their sedan offerings in favor of more popular and profitable trucks, crossovers, and SUVs.

      Average Price of 3-Year-Old Vehicle

      Given the current limited options, it is perhaps not surprising that the price for a three-year-old used sedan has risen by 48.7% from 2019 to 2025. Once averaging $19,734, they are now priced around $29,343. That’s a significant shift, yet sedans remain $7,166 less expensive than the average three-year-old used SUV.

      Excluding SUVs, a late model Nissan Sentra that cost $12,504 in 2019 now runs $18,224. Similarly, a three-year-old Honda Civic has risen from $16,472 to $23,813, while the Toyota Corolla has seen a 37.7% price hike to $19,792.

      Average Price of 3-Year-Old Vehicle

      It's no surprise that vehicles previously popular for under $20,000 are almost nonexistent now, particularly if you're looking for something no older than three years. The Honda CR-V, Toyota RAV4, and Subaru Forester used to be prime selections, but finding them priced below $20k is now uncommon.

      In 2019, 97.6% of three-year-old Civics were listed for less than $20,000; today, those cars are nearly nonexistent, with just 5.7% available below that price point. There are still a few options, but the Chevrolet Silverado 1500, which had 1.5% of its models priced in that category in 2019, can no longer be found under that limit.