You're Not Imagining Things: Cheap Used Cars Are Vanishing

Used car prices are still rising

If you’re struggling to find a decent used car for under $20,000, you’re not alone, and you’re not imagining things. A new study from iSeeCars finds that the number of affordable, late-model used vehicles has dropped off a cliff in recent years. Back in 2019, nearly half (49.3%) of all 3-year-old used cars were priced at or below $20,000. Today, that number has shriveled to just 11.5%. The average price of a 3-year-old used car is now $32,635 — a staggering 40.9% jump from 2019, when it was just $23,159. While the pandemic may feel like old news, its economic aftershocks are still distorting the car market.

“The pandemic may be a fading memory, but the lack of new car production five years ago has created a ‘pandemic hangover’ effect,” said Karl Brauer, executive analyst at iSeeCars.

Budget buyers are being pushed to older, higher-mileage cars

The most affordable segment of the used market — cars under $20,000 — has shrunk dramatically across all major vehicle types. Passenger cars saw the steepest increase in price, climbing 48.7% since 2019. That means entry-level sedans that once anchored the affordable used car market are now largely out of reach.

In 2019, more than 70% of 3-year-old passenger cars were priced under $20,000. In 2025? Just 28.1%. SUVs fared even worse, dropping from 39.2% to a mere 8.1% share in the sub-$20K category.

Familiar nameplates, unfamiliar prices

The shift in pricing is especially evident in once-affordable bestsellers. A few years ago, it wasn’t hard to find a lightly used Honda Civic or Toyota Camry for under $20,000. Now, those same models are averaging well over that threshold. The Civic’s average price jumped 44.6% to $23,813, while the Camry rose 43.5% to $23,755.

Some of the biggest price leaps came from small sedans:

• Nissan Sentra: Up 45.7% to $18,224
• Toyota Corolla: Up 37.7% to $19,792
• Chevy Equinox: Up 27.5% to $22,228

These were once the go-to models for frugal shoppers. Today, they’re inching closer to new-car pricing, without the warranties or latest tech.

Final thoughts

The used car market has been rising for three straight months, and there’s little indication prices will fall significantly anytime soon. The pandemic-related slowdown in new car production from 2020 to 2022 created a ripple effect that still limits the supply of newer used vehicles. Yet demand remains strong, especially for reliable models from Toyota, Honda, and Subaru.

For buyers with a strict $20,000 budget, the result is clear: you’ll likely need to shop older, higher-mileage vehicles, or rethink what kind of car you can afford. As Brauer put it, “Many car buyers are now priced out of late-model used cars, forcing them to consider older models with more miles to fit within their budget.”