The landscape of the pre-owned vehicle market has undergone a significant transformation, making the quest for an economical used car an increasingly challenging endeavor. Since 2019, the average price of a three-year-old used automobile has escalated by a striking 40.9 percent. This surge has drastically reduced the availability of vehicles priced under $20,000, which once constituted nearly half of the market for these cars.
A recent study by iSeeCars highlights this dramatic shift. In 2019, the average cost for a three-year-old used car stood at approximately $23,159. Fast forward to 2025, and that figure has soared to an average of $32,635. The segment of used cars priced below $20,000, which represented a substantial 49.3 percent of the market in 2019, has now dwindled to a mere 11.5 percent. This substantial decline underscores a growing affordability crisis for many potential car buyers.
This escalation in prices is largely attributed to the far-reaching consequences of the global pandemic. The COVID-19 outbreak disrupted new car manufacturing, compelling automotive companies to prioritize the production of more lucrative models throughout 2021 and 2022. This strategic shift inadvertently led to a reduced supply of new, lower-cost vehicles, which subsequently impacted the availability of their affordable used counterparts.
Karl Brauer, an executive analyst at iSeeCars, referred to this phenomenon as a \"pandemic hangover\" affecting the current used car market. He noted that a direct consequence of this market condition is that many consumers who are unable to afford late-model used cars are now compelled to explore older vehicles with higher mileage. Popular models like the Honda Civic, Toyota Corolla, and Nissan Rogue, once staples of the more accessible price brackets, have seen their prices jump by 44.6%, 37.7%, and 34.7% respectively. This trend means that the choices for buyers with limited budgets are progressively diminishing, making it harder to find suitable transportation solutions.
The scarcity of budget-friendly options extends beyond individual models. The proportion of used vehicles falling into the $30,000 to $40,000 range and above $40,000 has also expanded considerably. This shift has left a significant void in the market for those seeking more financially viable transportation. The current state of the market raises important questions about accessibility and economic viability for a broad segment of consumers, highlighting an urgent need for more affordable automotive solutions.
The current automotive landscape presents a stark reality: acquiring an affordable pre-owned vehicle has become exceptionally difficult. The sharp increase in prices, fueled by post-pandemic manufacturing adjustments, has squeezed out budget-friendly options, leaving consumers with fewer choices and a higher financial burden when seeking reliable transportation. This market trend emphasizes the growing challenge for individuals to access essential mobility without incurring significant debt.