Why Cheap Used Cars Are So Hard to Find

Affordable used cars are in tight supply, so shoppers with tight budgets may have to settle for an older model with higher mileage.The average three-year-old car costs about $33,000, according to an analysis in August from iSeeCars, an online car search site.A three-year-old car was often the sweet spot for buying used, auto experts say.Those vehicles — typically, leased models going back to dealers for resale — have relatively low mileage; have passed the peak period of depreciation, or drop in value; and often have the advanced safety features found in pricier, newer cars.But three-year-old used cars priced under $20,000 are increasingly rare.

Just one in nine now fits that criterion, the site found, down from about half in 2019, before the Covid-19 pandemic played havoc with car inventories.A mix of factors, including tariffs under the Trump administration and higher borrowing costs, has pushed up the cost of owning new cars, increasing demand for used models.One Chevrolet dealer lamented the lack of affordable used cars in the quarterly dealer sentiment survey by the research firm Cox Automotive, saying there are “not enough under $20,000 that aren’t total junk or need lots of work.”Prices for used electric vehicles have also risen, in part from consumers seeking relief from higher gas prices, according to Recurrent, an E.V.

analytics firm.(The AAA motor club reported that the average price of a gallon of regular gas was $4.29 on Friday, up from $3.19 a year ago.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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