Used cars are slightly cheaper these days, but prices remain nearly 50% higher than in 2019 and people have fewer options than ever before of scoring anything for less than $20,000.
Analysts at iSeeCars.com said Tuesday they analyzed prices of about 11 million used vehicles up to 5 years old and found that cars selling for under $20,000 made up about 12% of the used-car market this year, from a 49% slice of the market in 2019. Moreover, people might get stuck with a car with many more miles on it. “Used-car shoppers are now paying nearly 50% more money for cars that are 20% more used,” Brauer said.
At the same time, the pandemic also wreaked havoc with supplies of chips and auto parts, which cut down new-vehicle inventories and pushed prices higher amid the heightened demand. Priced out of new cars, many who previously considered new cars only turned to the used-vehicle market, contributing to the jump in demand — and prices.