Used Cars Under $20K Are Practically Gone - Here’s Why

Not too long ago, consumers had plenty of affordable vehicles to choose from when it came to shopping for used cars. Many, less than three years old, were often available for under $20,000, meaning you could shop around for the best deal, just like drivers compare auto insurance rates. Unfortunately, this is no longer the case.

A recent study from iSeeCars, which analyzed more than 2.6 million three-year-old used cars purchased in 2019 and 2025, found that roughly half of the used cars available in 2019 sold for less than $20,000. Today, just over 11% of used vehicles are available in that price range.

Here's what that could mean if you're in the market for a used vehicle that's less than three years old.

The average used car price has skyrocketed

The average price of a three-year-old used car has spiked by more than 40% since the pandemic, and consumers can expect to pay about $9,500 more for a three-year-old used car in 2025 compared to prices before the pandemic.

Back in 2019, a three-year-old used vehicle cost an average of $23,159. In 2025, that price is now $32,635 on average.

More specifically for budget shoppers, used cars available for under $20,000 only make up 11.5% of used car listings today. Back in 2019, 49.3% of used car listings were under $20,000. That's a whopping 37.8% decline in the number of used cars available for under $20k over the past five years.

Why are used car prices so high?

The pandemic may be in our collective rearview mirrors, but the effect it had on new car production is something the automotive industry is still feeling.

Due to significant restrictions on new-car production from 2020 to 2022, the current used-car chain is substantially lower now than it was in 2019. This leads to higher prices, with used vehicle prices around $9,500 higher in today's market.

In the iSeeCars study, executive analyst Karl Brauer referred to this as the "pandemic hangover" of the current used-car market. According to Brauer, this will force many used-car shoppers to become "priced out of late-model used cars," meaning that they will have to "consider older models with more miles to fit within their budget."

Which vehicle types are most affected?

Even though affordability has really decreased for every vehicle type, passenger cars have experienced the steepest price increase.

The average price of the used three-year-old passenger vehicles in 2019 was $19,734; their average price in 2025 is $29,343. That's a staggering 48.7% price increase.

In addition to the price itself, the number of passenger cars under $20k has also declined. In 2019, 70.7% of three-year-old passenger cars were priced below $20,000. As of 2025, only 28.1% of passenger cars are available for less than $20,000. That's a 60.2% decline.

This is a real blow for budget-conscious consumers, as used passenger cars were some of the most affordable on the market prior to the pandemic.

SUVs under $20k also dropped

SUVs have also been hit with staggering price increases. Previously, 39.2% of SUVs were priced under $20k. Now, this number is only 8.1%, which is a 79.3% decrease.

Popular models, such as the Honda CR-V and Toyota RAV4, have been hit particularly hard. Previously, 42.9% and 44.3% of these vehicles in the used car market cost less than $20k, respectively. Now, they only account for 0.2% and 0.5%. That means the percentage of these SUVs that were available for under $20k before the pandemic has decreased by 99.6% and 98.9% over the past five years.

Consumers on a tight budget looking to purchase an affordable used SUV will likely have to consider older models with higher mileage if they still wish to purchase a vehicle for under $20,000.

More popular models that are now out of reach

Other top-selling vehicles that have moved beyond affordability are the Honda Civic and the Toyota Camry.

In 2019, 97.6% of used three-year-old Honda Civics sold for under $20,000; in 2025, only 5.7% of them are available at that price point. That's a 94.1% decrease. Before the pandemic, a used three-year-old Honda Civic cost an average of $16,472. In 2025, a used three-year-old Honda Civic costs an average of $23,813, which is a 44.6% price increase.

The same goes for Toyota Camrys. In 2019, 96.7% of used three-year-old Camrys sold for less than $20,000. In 2025, only 8.3% of used three-year-old Toyota Camrys are available at this price point. That is a 91.4% decrease.

Additional best-selling three-year-old used vehicle models that consumers can no longer find for under $20,000 are the Chevrolet Equinox, Kia Sportage, Nissan Rogue, and the Toyota Corolla.

What this means for car shoppers

Whereas vehicles in the sub-$20,000 price range accounted for nearly half of all three-year-old used cars before the pandemic, in 2025, vehicles in the $20,000 to $30,000 price range account for the largest portion of three-year-old used cars.

So while it is still possible for drivers on a tight budget to find a one for under $20,000 in 2025, they'll likely be a rare find. In fact, only 11.5% of used three-year-old vehicles are currently available for under $20,000.

This makes it increasingly difficult for car shoppers looking for reliability when popular models and previously affordable vehicle types like sedans and SUVs are now so expensive. It doesn't just mean a price shift, but also restricted choices for budget shoppers.

Bottom line

Even though finding a used three-year-old vehicle for under $20,000 is rare, according to iSeeCar's study, there is still one vehicle whose average price falls under this range in 2025: the Nissan Sentra, which shoppers can currently purchase for an average of $18,224.

For drivers on a budget, finding used vehicles for less than $20,000, such as the Nissan Sentra, can be a smart money move for drivers, provided you know where to look.