Used Cars Under $20,000 Disappear as Prices Reach New Peaks

Auctions have virtually wiped out affordable options, prompting dealers to predict that the price floor will climb into the mid-$20,000s.

Overview

Dealers across the country report they have not bought any cars under $20,000 at auction in more than two years.
A study from iSeeCars finds that the average cost of a three-year-old used car has climbed by 40.9% since 2019 to about $31,000.
High interest rates and record average prices have cooled buyer demand following a brief surge after March tariff announcements.
Rental-fleet sell-offs during the pandemic and President Trump’s 25% import tariff on cars and auto parts drove earlier spikes in used-car purchases.
Industry leaders warn that remaining bargains are disappearing fast and predict the baseline price for common models will reach $23,000 to $25,000 soon.