An iSeeCars report shows that affordable used cars, or those priced under $20,000, are dwindling in America at alarming rates. The company's analysis shows that average used car prices are up 47.7 percent since 2019, and the share of used cars in the market decreased from just under half to 12.4 percent of the market.
Among the pandemic's many casualties is the affordable used car, which has nearly vanished from the used car marketplace. 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.
[iSeeCars’ Executive Analyst Karl Brauer]
iSeeCars analyzed more than 10 million (one to five-year-old) used car transactions between July 2019 and 2023. Here's what they found.
Key Takeaways:
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This year, your best bet at purchasing a used vehicle under $20,000 would be in cities with the highest share of them in the market, which include Florida locations like Miami-Ft. Lauderdale (18.9 percent used car sales under $20,000 in 2023), Orlando-Daytona Beach (17.9 percent), Jacksonville (17.2 percent) and Tampa-St Petersburg (Sarasota) (16.8 percent).
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The first non-Florida city with the highest share of used car sales was a tie between Cincinnati, Ohio and Oklahoma City, Oklahoma, with 16.4 percent.
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The percent share of used cars sales were down by at least 65 percent in America's top 50 metros, with Boston's -82.4 percent shift the biggest.
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Over the past four years, since 2019, the best-selling used cars all have seen their prices increase between 47 and 56 percent. Cars now cost nearly 1.5x their 2019 prices.
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Car models that've had the biggest crunch include: Jeep Wrangler (zero percent share of used car sales under $20K in 2023), GMS Sierra 1500 and Toyota Highlander (both 0.1 percent) and the Chevrolet Silverado (0.5 percent)
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Not only have prices gone up, the average mileage on used cars has also increased, with certain models having modest increases of 45 percent and others doubling since 2019.
Via iSeeCars.
[Image: Bassetts Honda]
