It’s been years since the pandemic and its supply chain disruptions caused new and used car prices to soar. Unfortunately, there’s no sign that prices at used car dealers will fall anytime soon.
If you’re waiting for the cost of used cars to return to its pre-pandemic levels, you may be in for a serious delay. Used car prices have been on the rise for the past three months, and there’s no indication that the trend will change anytime soon.
Today’s consumers pay an average of around $9,500 more for three-year-old cars at used car dealers than they did before the pandemic raised prices. There are far fewer used vehicles available for under $20,000, so buyers with low budgets are waiting longer than ever for the right deals.
Here’s Where the Situation Stands Today
A recent analysis performed by iSeeCars shows that the average three-year-old used car now costs $32,635. That’s an increase of $9,476 over the past six years. In 2019, before the pandemic, people were paying an average of $23,159 for three-year-old used cars.
It’s not just the average price of used cars that’s on the rise. The same underlying problems are behind today’s lack of used cars priced under $20,000. Vehicles that would have been available to budget shoppers pre-pandemic are now more expensive because all used vehicles have gone up in price.
What’s Behind the Ongoing Rise in Pricing?
People are starting to forget what it was like to live through the pandemic, but high car prices have yet to become a stressful memory. According to iSeeCars’ Executive Analyst, Ken Brauer, we’re currently experiencing a “pandemic hangover” effect.
In 2019, pre-pandemic, nearly 50% of three-year-old used cars fell into the sub-$20k price range. In 2025, the $20,000-$30,000 price range makes up the most significant percentage of three-year-old used cars, at 43%.
Buyers are now getting priced out of purchasing late-model used vehicles. Instead of having access to half of all three-year-old used cars, drivers with a $20,000 budget will only be able to buy 11.5% of sedans. As a result, buyers are forced to purchase older vehicles with higher mileage.
Passenger Cars Have Suffered the Worst Affordability Decline
Passenger cars, such as the Toyota Corolla and Honda Civic, used to make up the bulk of sub-$20,000 vehicles at used car dealers. Over 70% of passenger cars fell into this category. Now, only 28.1% of them cost $20k or less, representing a 60.2% decline.
SUVs have largely left the sub-$20k price range entirely. Their share is down 79.3%. They now have an 8.1% share of the market compared to 39.2% in 2019. Examples of popular models that are no longer affordable to budget buyers include the Honda CR-V, Toyota RAV4, and Subaru Forester.
What’s the Best Solution?
Drivers can’t put off buying cars forever. Their options in response to the recent price increases at used car dealers are limited, though. Buyers can spend some extra time saving for a higher down payment, or they can expand their searches to include older, higher-mileage vehicles.
