used cars under $20K
Saving Money

Revving Up Savings: Used Cars Under $20K Are Trending

For those who keep an eye on the automotive market, it has felt like car prices have only been moving in one direction—up. Discounts have become rare, and the term “good deal” seems to have lost all meaning. However, recent data from an iSeeCar study offers some hope, specifically for buyers looking for used cars under $20K. Though the study confirmed we are no where near pre-pandemic pricing, it revealed an exciting trend: used car prices are steadily declining.

What does the data say?

The iSeeCars study analyzed over 17.9 million 1- to 5-year-old used cars sold between January and August of 2019, 2023, and 2024, examining both pricing and mileage to track changes over the past five years. While there were many highlights from this study that we’ll outline below, perhaps the most noteworthily is that the availability of used cars under $20K has increased 30.3% since last year.

This is promising news for anyone in search of a reliable ride without breaking the bank. Since inventory concerns have posed a significant challenge to the used car market, the increasing availability will encourage more buyers to explore their options again, especially if the price is right.

iSeeCar study

Image Source: iSeeCars.com

Today, the average price of used cars is $32,672, a 4.7 percent decrease from 2023. Here’s where things get more interesting: while the average price for these 1- to 5-year-old used cars is still 40.1% higher than in 2019, we’ve seen a consistent price decline over the first eight months of 2024. This suggests that while we’re not quite back to pre-pandemic pricing, we’re moving in the right direction.

Why are prices dropping?

We’re basically seeing a slow but progressive turnaround from COVID era. During that time, particularly in the first few years, used car buyers often had to pay more for vehicles with higher mileage. With demand skyrocketing and supply dwindling, it became a buyer’s nightmare. Consumers were forced to compromise, often settling for older models with more wear and tear, all while watching their budgets stretch thinner.

And now, we’re seeing a much-needed shift. As new car production has ramped back up and supply chains stabilize, the inventory of used cars has begun to increase as a result. This influx has made it possible for buyers to choose from a wider selection of vehicles, leading to a natural decrease in prices over the course of 2024.

Fewer Miles, Lower Prices

The study revealed that the average mileage of used cars has decreased to 39,109 miles, marking a 2.8% drop from last year. Buyers are now paying less for vehicles that have experienced less wear and tear—a significant win compared to the early pandemic days.

As used car prices continue to decline, this reduction in average mileage indicates that buyers can enjoy better deals without compromising on the quality of the vehicles they purchase.

used cars under $20K

Used cars under $20K make a comeback…just in time

No matter what type of buyer you are, a deal is a deal. The recent iSeeCars.com study offers a glimmer of hope, telling us that the used car market is poised to provide some much-needed relief for buyers who have grown indifferent of the new car market and car shopping in general.

Though there’s still a way to go, many buyers will be happy to know that the availability of used cars under $20K is on the rise. As this trend continues, it’s clear that the market is shifting, bringing renewed optimism to those seeking affordable, reliable vehicles.

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Michaella Malone
Michaella Malone is a content specialist and full-time freelancer with 5+ years of experience working with small businesses on online platforms. She is a graduate of Florida State University (Go Noles!) and avid traveller, having visited over 25 countries and counting. In addition to blogging, ghostwriting, and social media content, she has contributed to the development of English as a Second Language (ESL) curriculums for international programs.

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