The Shocking Cost of Used Cars Today

For years, $20,000 was something of a sweet spot in the used-car market. It was enough money to buy a relatively young vehicle without committing to a new-car payment, and shoppers could choose from plenty of dependable sedans, crossovers and even some SUVs.

Those days are fading fast.

A new study from iSeeCars.com shows just how dramatically used-car affordability has changed since before the pandemic. After analyzing more than 11.4 million used vehicles between 3 and 15 years old sold in 2019 and 2026, iSeeCars found that buyers shopping with a $20,000 budget must now accept a substantially older vehicle than they would have seven years ago.

The average 3-year-old used vehicle now costs $32,651, according to iSeeCars. In 2019, the average was $23,624. That is a $9,027 increase, or 38.2%, in seven years.

Perhaps more revealing is what has happened to the supply of late-model vehicles priced below $20,000.

In 2019, 49.4% of all 3-year-old used vehicles cost less than $20,000. Today, only 11.4% do. In other words, a $20,000 budget that once gave a shopper access to almost half the 3-year-old used-car market now reaches barely one vehicle in nine.

The problem continues as vehicles get older. Among 5-year-old vehicles, 69.2% were under $20,000 in 2019. In 2026, that figure has dropped to just 26.6%. At six years old, 80% were below $20,000 seven years ago, compared with 42.4% today.

The age shoppers must reach before more than half of used vehicles cost less than $20,000 has moved from 4 years old to 7 years old. In 2019, 54.1% of 4-year-old vehicles were below $20,000. Today, shoppers have to move all the way to a 7-year-old vehicle before the percentage finally climbs above half, at 53%.

That is a major change for buyers because purchasing an older vehicle involves more than accepting a few additional miles on the odometer. As iSeeCars Executive Analyst Karl Brauer points out, older vehicles generally carry greater maintenance and repair exposure after the sale.

Mainstream Used Cars Have Taken Some of the Biggest Hits

The affordability squeeze becomes particularly obvious when looking at vehicles traditionally associated with value.

Among the 21 best-selling used vehicles studied by iSeeCars, the Hyundai Elantra had the largest increase. The average price of a 3-year-old Elantra jumped from $12,295 in 2019 to $19,178 in 2026, a 56% increase.

The Kia Sportage rose 50.5%, from $16,312 to $24,543. A 3-year-old Toyota Camry increased 49.9%, from $16,567 to $24,829, while the Honda Civic climbed 44.7%, from $16,430 to $23,771.

Even the Toyota Corolla, long one of the textbook examples of affordable transportation, has seen a major jump. Its average 3-year-old price rose from $14,301 to $19,971, an increase of 39.7%.

Trucks and SUVs have not escaped, either. The average 3-year-old Ram 1500 increased 42.5% to $40,060, the Honda CR-V rose 41.4% to $29,245, and the Toyota RAV4 climbed 40.2% to $29,190.

The numbers illustrate why buyers who remember what $20,000 used to purchase can experience sticker shock today. The market has not simply moved higher at the luxury end. Some of the largest increases are attached to the very vehicles consumers traditionally seek when trying to keep their transportation costs under control.

Not Every Used Vehicle Went Up

There are exceptions. The study found the average price of a 3-year-old Tesla Model X actually fell 17%, from $75,554 in 2019 to $62,689 in 2026. The Land Rover Discovery Sport declined 2.4%. Several other vehicles, including the Mazda CX-9, Tesla Model S, Volvo XC90, Nissan Murano, Chevrolet Malibu and Ford Edge, posted increases of less than 10%.

At the opposite extreme, luxury and performance vehicles recorded some extraordinary gains. The Porsche Cayenne led the study with a 75.7% increase, followed by the Porsche 911 at 74% and Mercedes-Benz G-Class at 72.8%.

There is one important qualification when looking at the study: iSeeCars did not adjust the 2019 prices for inflation. The figures compare the actual transaction-market pricing from the two periods in nominal dollars.

Still, the practical impact on today’s shopper is difficult to miss. Whether caused by higher new-car prices, the lingering effects of reduced vehicle production during the pandemic years, changes in the mix of vehicles being sold or other market forces, $20,000 simply does not buy the same age of vehicle it once did.

For consumers, that makes smart used-car shopping more important than ever. A buyer determined to remain below $20,000 may need to consider vehicles that are several years older, making a pre-purchase inspection, vehicle-history report and evaluation of expected maintenance increasingly important.

Seven years ago, $20,000 could put you behind the wheel of a fairly young used car.

Today, that same money often comes with three extra birthdays.

Photo: LightField Studios/Shutterstock.com.