Affordable used cars are rapidly disappearing from the market: cars cheaper than $ 20,000 become a deficit
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12.08.2026 22:39
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1 min read
The share of used cars priced under $20,000 in the secondary auto market is shrinking rapidly, forcing buyers to either significantly increase their budgets or settle for high-mileage vehicles. According to research published by Motor1, the budget segment of the pre-owned vehicle market has shrunk several times over compared to pre-pandemic levels.
Back in 2019, used cars priced under $20,000 accounted for nearly half of total secondary market sales. Now, the share of such vehicles has dropped to record lows, while their average age and mileage have increased significantly.
Experts cite general inflation, the lingering effects of past supply chain disruptions, and the discontinuation of budget compacts and hatchbacks by automakers as the primary reasons for the shortage. To stay within a $20,000 limit, buyers are forced to choose from vehicles that are at least 10 years old with over 100,000–120,000 miles on the odometer.
Analysts emphasize that the disappearance of affordable options, combined with high auto loan interest rates, is increasing the financial burden on motorists, and there are no signs of prices dropping in the secondary market in the near future.
