Used Cars Priced Under $20K Are Vanishing-September 2024-www.zzdcar.com

Home

Reviews

Used Cars Priced Under $20K Are Vanishing

Used Cars Priced Under $20K Are Vanishing-September 2024

2023-12-14 EST 02:30:55

Summary:

The average used car’s price has increased by 47.7 percent since the pandemic Used cars priced under $20,000 made up 49.3 percent of the market in 2019; they now make up just 12.4 percent of the market in 2023 More than half of today’s used cars (1- to 5-years old) also have 20 percent or more miles than they did 3 years ago, meaning buyers have to pay more money for cars that have been driven substantially farther In 2019, about 50 percent of used Honda CR-Vs and Toyota RAV4s cost less than $20,000, but in 2023 only 2 percent of them are priced under $20,000, and these same used models also have twice as much mileage as they did in 2019 The surge in used car prices has been obvious over the past few years. iSeeCars.com’s latest study not only demonstrates the practical effects of this dramatic rise in used car costs, but also confirms shoppers must pay these higher prices despite a substantial increase in used car mileage. For some of the best-selling cars, buyers are faced with used models having over twice as many miles compared to the pre-pandemic market, while paying 25 to 50 percent higher prices.

iSeeCars analyzed over 10.8 million 1- to 5-year-old used cars and found the average used car cost $22,493 in 2015, with a slight bump to $23,351 in 2019. But over the last four years, used car prices have exploded – ballooning to $34,491 in 2023, which is a 47.7 percent rise, averaging more than 10 percent each year.

“Among the pandemic’s many casualties is the affordable used car, which has nearly vanished from the used car marketplace,” said iSeeCars’ Executive Analyst Karl Brauer. “In 2019, used car shoppers with a budget of $15,000 could afford over 20 percent of the late-model used car market. Today that budget only gets them access to 1.6 percent of the market.”

Used Cars by Price Range: 2019 vs. 2023 – iSeeCars Study
Price Range	Share of Used Car Sales 2019	Share of Used Car Sales 2023	% Change in Share	Avg. Mileage 2019	Avg. Mileage 2023	% Change in Avg. Mileage
Up to $10K	3.0%	0.1%	-97.9%	72,205	116,158	60.9%
$10K-$15K	19.9%	1.5%	-92.6%	47,886	84,710	76.9%
$15K-$20K	26.4%	10.9%	-58.9%	37,032	60,257	62.7%
$20K-$25K	17.8%	19.5%	9.4%	34,617	45,409	31.2%
$25K-$30K	13.8%	18.2%	31.6%	33,810	39,565	17.0%
$30K-$35K	7.6%	14.0%	84.3%	30,387	36,959	21.6%
$35K-$40K	4.5%	11.8%	160.2%	29,644	34,469	16.3%
$40K-$45K	2.5%	7.3%	190.6%	28,406	31,212	9.9%
$45K-$50K	1.7%	5.4%	219.3%	26,792	30,224	12.8%
$50K-$55K	0.9%	3.1%	245.0%	23,053	29,089	26.2%
$55K-$60K	0.7%	2.3%	258.4%	20,077	28,614	42.5%
$60K-$65K	0.3%	1.5%	332.1%	17,840	27,237	52.7%
$65K-$70K	0.2%	1.3%	479.1%	16,728	25,461	52.2%
Over $70K	0.6%	3.2%	437.7%	12,334	16,368	32.7%

While they only made up 3 percent of the used car market in 2019, shoppers could still find models with less than 75,000 miles on the odometer for under $10,000 in 2019. Now those cars are gone, with only 1.5 percent costing under $15,000 and around 11 percent priced between $15,001 and $20,000.

Within the sub-$20,000 price range, the average used car’s mileage was 43,541 in 2019. Now it’s 63,457, an increase of 45.7 percent. For added perspective, in 2015 cars costing up to $20,000 made up 52.7 percent of sales, and the average mileage of these cars was 44,777. Across all price points, more than half of cars sold in 2023 have at least 20 percent more mileage than similarly priced cars in 2019.

“During the pandemic lockdowns one of the few things people could still do was take a drive, and clearly many of them did,” said Brauer. “This drove up the mileage across the used car market, but the supply of new and used cars was so constricted that the additional mileage didn’t hurt used car prices – they still went up.”

Popular Cars That Cost Between 25% and 57% More Today

Below are some of America’s best-selling cars and their changes in used-car pricing from 2019 to 2023. Nine of these cars cost less than $20,000 in 2019, and all but two of them averaged less than $30,000. Today only the Hyundai Elantra still costs less than $20,000, and eight models cost more than $30,000. Examples of mainstream models that no longer cost less than $20,000 in the used car market include the Honda Accord and Civic, the Hyundai Tucson, the Nissan Rogue, and the Toyota Camry and Corolla.

Price Increases for Best-Selling Used Cars: 2019 vs. 2023
Rank	Model	Avg. Price 2019	Avg. Price 2023	% Change in Avg. Price 2019-2023
1	Ram 1500	$27,324	$42,881	56.9%
2	Toyota Corolla	$14,220	$21,308	49.8%
3	Toyota Camry	$17,107	$25,537	49.3%
4	Honda Civic	$16,577	$24,301	46.6%
5	GMC Sierra 1500	$32,862	$47,364	44.1%
6	Honda Accord	$18,627	$26,658	43.1%
7	Hyundai Elantra	$13,200	$18,744	42.0%
8	Toyota RAV4	$20,640	$29,094	41.0%
9	Jeep Wrangler	$25,936	$35,953	38.6%
10	Honda CR-V	$20,714	$28,401	37.1%
11	Chevrolet Silverado 1500	$29,629	$40,359	36.2%
12	Nissan Rogue	$18,015	$24,241	34.6%
13	Ford F-150	$31,520	$42,104	33.6%
14	Ford Explorer	$26,502	$34,904	31.7%
15	Hyundai Tucson	$18,270	$23,869	30.6%
16	Chevrolet Malibu	$15,735	$20,372	29.5%
17	Toyota Tacoma	$28,443	$36,675	28.9%
18	Subaru Crosstrek	$20,763	$26,480	27.5%
19	Mazda CX-5	$20,580	$26,191	27.3%
20	Chevrolet Equinox	$17,954	$22,685	26.3%
21	Subaru Outback	$23,433	$29,413	25.5%
22	Jeep Grand Cherokee	$27,454	$34,307	25.0%
23	Toyota Highlander	$29,153	$36,311	24.6%
Average of all 1- to 5-year-old used cars		$23,351	$34,491	47.7%

“Two popular compact SUVs, the Honda CR-V and Toyota RAV4, increased in price 37.1 percent and 41 percent, respectively, over the last 4 years,” said Brauer. “These price increases occurred despite a doubling of the average mileage on these same used models, from less than 50,000 miles in 2019 to over 100,000 miles in 2023.”

Best-Selling Used Cars Under $20,000: 2019 vs. 2023 – iSeeCars Study
Rank	Model	Share of Used Car Sales < $20K, 2019	Share of Used Car Sales < $20K, 2023	% Change in Share	Avg. Mileage Used Cars < $20K, 2019	Avg. Mileage Used Cars < $20K, 2023	% Change in Avg. Mileage
1	Jeep Wrangler	6.5%	0.0%	-99.6%	74,202	72,084	-2.9%
2	Honda CR-V	48.4%	0.9%	-98.1%	45,272	103,029	127.6%
3	Toyota RAV4	46.7%	1.7%	-96.3%	42,529	101,880	139.6%
4	GMC Sierra 1500	2.8%	0.1%	-95.7%	80,181	122,845	53.2%
5	Toyota Highlander	2.2%	0.1%	-95.2%	93,706	127,982	36.6%
6	Honda Accord	72.4%	3.9%	-94.6%	41,579	93,395	124.6%
7	Jeep Grand Cherokee	10.8%	0.6%	-94.2%	81,078	110,348	36.1%
8	Toyota Tacoma	6.2%	0.4%	-94.0%	75,026	97,847	30.4%
9	Mazda CX-5	45.6%	2.9%	-93.6%	47,837	75,862	58.6%
10	Ram 1500	8.9%	0.7%	-92.4%	81,322	126,270	55.3%
11	Toyota Camry	86.7%	7.9%	-90.9%	41,043	89,656	118.4%
12	Subaru Crosstrek	42.3%	4.2%	-90.1%	55,125	89,805	62.9%
13	Ford Explorer	14.3%	1.5%	-89.2%	80,994	107,937	33.3%
14	Chevrolet Silverado 1500	4.4%	0.5%	-88.0%	94,255	140,311	48.9%
15	Subaru Outback	24.5%	3.0%	-87.7%	69,355	104,276	50.4%
16	Honda Civic	89.6%	11.8%	-86.8%	34,393	62,245	81.0%
17	Ford F-150	4.9%	0.8%	-84.2%	96,262	143,271	48.8%
18	Nissan Rogue	79.4%	19.0%	-76.1%	37,618	72,430	92.5%
19	Hyundai Tucson	78.5%	20.5%	-73.9%	34,941	69,409	98.6%
20	Chevrolet Equinox	78.4%	23.3%	-70.3%	41,551	71,035	71.0%
21	Toyota Corolla	99.7%	37.1%	-62.8%	37,034	62,005	67.4%
22	Chevrolet Malibu	94.5%	51.7%	-45.2%	40,622	69,234	70.4%
23	Hyundai Elantra	99.5%	73.0%	-26.6%	37,162	55,942	50.5%
Average of all 1- to 5-year-old used cars		49.3%	12.4%	-74.8%	43,541	63,457	45.7%

“Used car shoppers have to face the stark reality of paying more for cars with higher mileage compared to the pre-pandemic used market,” said Brauer. “It’s news nobody wants to hear, but the numbers don’t lie. This means due diligence in knowing a used car’s market value and confirming its service history is more important than ever.”

These are iSeeCars’ top picks for the best used cars for shoppers on a budget:

Best Used Cars Under $10,000

Best Used Cars Under $15,000

Best Used Cars Under $20,000

Changes in Affordable Cars by Metro Area

The table below shows the share of used cars priced under $20,000 in 2019 and 2023 for each of the top 50 metro areas by population. In each metro area, there was a large drop in the share of low-priced used cars. The drop was largest in the Boston-Manchester area and smallest in Oklahoma City.

Loss of Used Car Share Under $20,000 in Top 50 Metro Areas: 2019 vs. 2023 – iSeeCars Study
Rank	Metro Area	Share of Used Car Sales < $20K, 2019	Share of Used Car Sales < $20K, 2023	% Change in Share
1	Boston, MA-Manchester, NH	46.7%	8.2%	-82.4%
2	Austin, TX	50.0%	10.0%	-79.9%
3	San Francisco-Oakland-San Jose, CA	51.5%	10.4%	-79.9%
4	Minneapolis-St. Paul, MN	43.0%	9.0%	-79.1%
5	Greenville-Spartanburg, SC	48.9%	10.3%	-78.9%
6	Denver, CO	41.6%	9.0%	-78.5%
7	Harrisburg-Lancaster-York, PA	47.9%	10.3%	-78.4%
8	Milwaukee, WI	49.5%	10.7%	-78.3%
9	Los Angeles, CA	53.9%	12.0%	-77.8%
10	Charlotte, NC	52.9%	11.8%	-77.7%
11	Philadelphia, PA	51.2%	11.4%	-77.7%
12	Hartford & New Haven, CT	52.0%	11.6%	-77.7%
13	Seattle-Tacoma, WA	44.7%	10.0%	-77.6%
14	Raleigh-Durham (Fayetteville), NC	51.4%	12.1%	-76.5%
15	Washington, DC (Hagerstown, MD)	51.4%	12.1%	-76.4%
16	West Palm Beach-Ft. Pierce, FL	52.7%	12.6%	-76.1%
17	Grand Rapids-Kalamazoo, MI	49.0%	11.9%	-75.8%
18	Detroit, MI	52.7%	12.8%	-75.7%
19	St. Louis, MO	49.5%	12.3%	-75.2%
20	New York, NY	47.8%	11.8%	-75.2%
21	Birmingham, AL	47.2%	11.8%	-75.0%
22	San Antonio, TX	48.9%	12.2%	-75.0%
23	Albuquerque-Santa Fe, NM	46.7%	11.7%	-74.9%
24	Fresno-Visalia, CA	57.5%	14.5%	-74.9%
25	Nashville, TN	48.0%	12.1%	-74.7%
26	Pittsburgh, PA	47.3%	11.9%	-74.7%
27	Portland, OR	45.4%	11.6%	-74.4%
28	Sacramento-Stockton-Modesto, CA	51.9%	13.3%	-74.4%
29	Las Vegas, NV	54.1%	13.9%	-74.3%
30	Indianapolis, IN	51.7%	13.6%	-73.7%
31	Norfolk-Portsmouth-Newport News,VA	56.8%	15.0%	-73.7%
32	Atlanta, GA	49.9%	13.3%	-73.4%
33	Phoenix, AZ	53.8%	14.4%	-73.3%
34	Dallas-Ft. Worth, TX	46.3%	12.4%	-73.3%
35	Baltimore, MD	52.0%	14.0%	-73.2%
36	San Diego, CA	53.1%	14.3%	-73.1%
37	Louisville, KY	51.9%	14.1%	-72.8%
38	Chicago, IL	51.6%	14.1%	-72.7%
39	Kansas City, MO	51.0%	14.2%	-72.2%
40	Greensboro-Winston Salem, NC	52.8%	14.8%	-72.0%
41	Houston, TX	46.9%	13.2%	-71.8%
42	Columbus, OH	55.2%	15.6%	-71.8%
43	Cleveland-Akron (Canton), OH	57.6%	16.3%	-71.7%
44	Cincinnati, OH	56.0%	16.4%	-70.7%
45	Salt Lake City, UT	48.0%	14.8%	-69.2%
46	Tampa-St Petersburg (Sarasota), FL	54.5%	16.8%	-69.1%
47	Jacksonville, FL	54.6%	17.2%	-68.5%
48	Orlando-Daytona Beach, FL	56.4%	17.9%	-68.2%
49	Miami-Ft. Lauderdale, FL	56.4%	18.9%	-66.5%
50	Oklahoma City, OK	48.0%	16.4%	-65.9%

Methodology

iSeeCars analyzed over 10.8 million 1- to 5-year-old used cars sold between January and July of 2019 and 2023. List prices and average odometer readings were tallied and aggregated to compare the share of cars at various price points across the two periods, as well as to compare the average mileage of cars before and after the COVID-19 pandemic. A selection of best-selling vehicles were analyzed and ranked by the change in share of cars priced under $20,000 from 2019 to 2023.

About iSeeCars.com

iSeeCars.com is a data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resources, including the iSeeCars VIN Check report and Best Cars Rankings. iSeeCars has saved users over $406 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.

Previous Article：The Hottest Cars on the Market Right Now in Each State Next Article：New Hybrids and EVs Fall Below MSRP, Despite Ongoing New-Car Demand

Comments

Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.