Used Cars Under $20K Are Making a Comeback

( iSeeCars ) – While used car prices remain well above pre-pandemic levels, the trend of ever-increasing prices has reversed over the past year. Used car prices have dropped 4.7 percent since 2023, and the availability of sub-$20,0000 cars has risen 30 percent. The average price for a 1- to 5-year-old used car is still 40.1 percent higher than 2019, but this downward shift in pricing has been consistent for the first 8 months of 2024.

iSeeCars analyzed over 17.9 million 1- to 5-year-old used cars sold between January and August of 2019, 2023, and 2024. Both pricing and mileage were analyzed to track changes over these five years.

“After years of increasing used car prices we’ve finally seen prices drop in the past year,” said iSeeCars’ Executive Analyst Karl Brauer. “While $20,000 would buy approximately half of the 1- to 5-year-old used car market in 2019, that number was down to just 12.7 percent in 2023. Now it’s on the rise again, with 16.5 percent of used cars priced below $20,000 in 2024.”

After rising 47.0 percent, from $23,314 to $34,279 between 2019 and 2023, used car prices are down 4.7 percent to $32,672 in 2024. This shift comes from an increase in the share of used cars priced below $20,000, which had fallen from 49.5 percent in 2019 to 12.7 percent in 2023 – a drop of 74.4 percent. But the share of sub-$20,000 used cars went back up last year, increasing to 16.5 percent in 2024, a 30.3 percent bump in sub-$20,000 car availability since 2023.

“Used car prices remain well above pre-pandemic levels,” said Brauer. “But between their recent drop and the Fed’s cut in interest rates, buyers are looking at a meaningful improvement in used car affordability.”

*For the “Up to $10k” price range, Share of Used Car Sales was 0.07% in 2023, and 0.14% in 2024.

As shown in the table, all used car segments priced below $30,000 have increased in market share in 2024 while every segment above $30,000 has decreased. This further reflects a drop in market activity for pricier models.

Used Cars Becoming Cheaper and Less Used

The drop in used car pricing has been accompanied by a drop in the average mileage of these vehicles. This means buyers are not only paying less, they are also getting used models with fewer miles. Even better, some of the biggest mileage drops are in the lowest-priced segments, with used cars under $10,000 having 9.6 percent fewer miles, and used cars between $15,000 and $20,000 having 9.2 percent fewer miles.

“In a complete reversal from the COVID era, where used car buyers had to pay more money for cars with more miles on them, today’s used car buyers are benefitting from not only lower prices but lower miles,” said Brauer. “They’re getting a less used car at a better price.”

Popular Models Are Getting More Affordable, with Lower Miles

High-volume, popular used models have gotten more affordable in the past year. In 2019, eight of these 24 models were available for under $20,000, including the Chevrolet Equinox and Malibu, Honda Accord and Civic, and Toyota Corolla and Camry. But that number had dropped to just one, the Hyundai Elantra, in 2023. In 2024 three popular models are priced under $20,000, with the Chevrolet Malibu and Toyota Corolla rejoining the Hyundai Elantra at a sub-$20,000 price.

“The sub-$20,000 club is still pretty elite, but at least a few used models fit that budget today versus a year ago,” said Brauer. “And if buyers can stretch to around $24,000, several additional models, including the Chevrolet Equinox, Honda Civic, Hyundai Tucson, and Nissan Rogue come into play.”

“The reduction in average mileage for high-volume models means additional value for today’s used car shoppers,” said Brauer. “What makes many of these cars so popular is their long lifespan, with shoppers enjoying a higher percentage of that if they buy today compared to a few years ago.”

“Limited supply and high demand saw used car prices skyrocket during the pandemic,” said iSeeCars’ Executive Analyst Karl Brauer. “But the situation is slowly moderating, as reflected in today’s lower prices and reduced mileage on 1- to 5-year-old used cars. This represents growing value for today’s shoppers, especially when combined with falling interest rates. Used car buyers waiting for improved affordability are finally being rewarded for their patience.”

More from iSeeCars:

• Longest-Lasting Cars, Trucks, and SUVs to Reach 250,000 miles
• Most Affordable Cars
• Best Cars for the Money

Methodology

iSeeCars analyzed over 17.9 million 1- to 5-year-old used cars sold between January and August of 2019, 2023, and 2024. List prices and average odometer readings were tallied and aggregated to compare the share of cars at various price points across the three periods, as well as to compare the average mileage of cars. A selection of best-selling vehicles were additionally analyzed and ranked.

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 $423 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.

This article, Used Cars Under $20,000 Are Making a Comeback , originally appeared on iSeeCars.com.

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