Affordable Used Cars Are Vanishing: Models Under $20,000 Becoming Scarce

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 several-fold compared with pre-pandemic levels.

Back in 2019, used cars under $20,000 accounted for nearly half of all secondhand sales. Now, their share has dropped to minimal levels, while their average age and mileage have grown noticeably.

Experts attribute the shortage primarily to overall inflation, the lingering effects of supply-chain disruptions in recent years, 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 erosion of affordable options, combined with high auto-loan rates, is adding financial pressure on car owners, and there are no signs of price declines on the used market in the near future.