A study shows affordable options are disappearing from the market

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The average price of 3-year-old used cars has increased 40.9% since the pandemic, from $23,159 in 2019 to $32,635 in 2025
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Used cars priced under $20,000 made up 49.3% of the 3-year-old market in 2019, compared to 11.5% of the market today
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Passenger cars saw the biggest price increase since 2019, up 48.7%, with truck prices up 28.8% and SUVs up 15.4%
The long shadow of the COVID-19 pandemic continues to stretch across the used car market, leaving consumers grappling with record-high prices for late-model vehicles. A new report from automotive research site iSeeCars reveals that the average price of a 3-year-old used car has soared to $32,635, marking a $9,476 increase from the 2019 pre-pandemic average of $23,159.
This dramatic rise is being blamed on restricted new vehicle production during the pandemic years of 20202022. With fewer new cars entering the market during that period, the supply of used cars today especially newer models is significantly reduced.
"The pandemic may be a fading memory, but the lack of new car production five years ago has created a pandemic hangover effect for todays used car market," said Karl Brauer, executive analyst at iSeeCars.
Budget-conscious buyers are out of luck
The most striking consequence of this supply gap is the collapse of the affordable used car segment. In 2019, nearly half (49.3%) of all 3-year-old used cars were priced under $20,000.
Fast forward to 2025, and that number has plummeted to just 11.5%, a 76.6% drop.
Instead, the $20,000$30,000 price range now dominates, making up 43% of the market. In more bad news for buyers, the share of 3-year-old cars priced over $40,000 has more than tripled, rising from 5.6% to 19.4%.
Compact sedans and other passenger cars, which historically offered affordable options for cost-conscious consumers, have seen the steepest declines in affordability. In 2019, 70.7% of these vehicles were priced under $20,000. In 2025, just 28.1% remain in that range, a 60% decline.
SUVs fared even worse in terms of affordability, with sub-$20,000 models dropping 79.3% over the same period.
The big bump in passenger car costs reflects a loss of late-model used vehicles for buyers on a tight budget, said Brauer.
Once-affordable favorites now rare under $20,000
Popular models that once defined value like the Honda Civic, Toyota Camry, Toyota Corolla, and Subaru Forester have largely exited the sub-$20,000 market. For instance:
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In 2019, 97.6% of used Honda Civics sold for under $20,000. In 2025, that number has shrunk to just 5.7%.
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The Toyota RAV4s sub-$20K share plunged from 44.3% to 0.5%.
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The Honda CR-V dropped from 42.9% to 0.2%.
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The Nissan Sentra, one of the few holdouts, saw a less severebut still significantdecline from 100% to 85%.
The report shows that prices for these best-selling used models have jumped by 25% to 45% over the past six years:
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Nissan Sentra: +45.7% to $18,224
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Honda Civic: +44.6% to $23,813
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Toyota Camry: +43.5% to $23,755
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Toyota RAV4: +36.7% to $28,431
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Ford F-150: +35.5% to $42,663
According to iSeeCars, used car prices have been on the rise for the past three consecutive months, with no signs of a slowdown. For many shoppers, the only remaining path to car ownership within a $20,000 budget is to look at significantly older models with higher mileage, vehicles that may carry added repair risks and maintenance costs.
Posted: 2025-06-27 11:24:11