In the second quarter of 2026, only 32% of used car sales were for vehicles under $20,000, a sharp decline from 55.2% in the same quarter of 2019, according to Edmunds. This shift indicates that consumers are increasingly seeking affordable options amid high inflation.
The average list price for a used car reached $27,028 in July, marking a 29% increase since July 2019, which aligns with overall inflation trends. The average used car in the $15,000 to $20,000 range is now six years old with 71,192 miles, compared to 3.4 years and 41,851 miles in 2019. Buyers should be aware that lower upfront costs for older cars may lead to higher maintenance expenses.
Additionally, the average interest rate for used car loans is about 11.2%, significantly higher than the 6.4% for new car loans, which can impact overall affordability. Buyers with lower credit scores face even steeper rates, exceeding 21%.
Experts advise considering the potential lifespan of the vehicle when choosing loan terms to avoid financial strain if the car needs to be replaced before the loan is paid off