Affordable Used Cars Are Disappearing Fast: Models Under $20,000 Becoming Scarce
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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 on the secondhand market is shrinking rapidly, forcing buyers to either significantly increase their budgets or settle for high-mileage vehicles. According to a study published by Motor1, the budget segment of the used-car market has contracted severalfold compared with pre-pandemic levels.
Back in 2019, used cars under $20,000 accounted for nearly half of all secondhand sales. Now that share has dropped to record lows, while the average age and mileage of such vehicles have risen noticeably.
Experts attribute the shortage to overall inflation, the lingering effects of supply chain disruptions, and automakers discontinuing budget compacts and hatchbacks. To stay within the $20,000 limit, buyers now have to choose from cars that are at least 10 years old with over 100,000–120,000 miles on the odometer.
Analysts stress that the dwindling supply of affordable options, combined with high auto loan rates, is adding to the financial strain on car buyers, and there are no signs of prices easing on the used market anytime soon.
