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Used car prices remain high as demand for affordable vehicles increases across the United States

Budget-conscious shoppers are finding it increasingly difficult to find affordable used cars, as prices for older vehicles remain high due to increased demand and tightening supply. While the average three-year-old used car now costs approximately $33,000, only one in nine of these vehicles sells for less than $20,000, a significant decrease from 2019.

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Factors contributing to the shortage include higher new-car prices, tariffs under the administration, and increased borrowing costs. Consumers are also seeking relief from high gas prices by looking at used electric vehicles, which continue to show relative strength in the market. Data shows that older and more affordable units, such as 9-year-old and 10-year-old vehicles, are holding value better than the long-term average. This trend highlights the increasing demand for budget-friendly options. Retail sales have been picking up throughout August, with the days' supply falling to 44 days at the end of the month. Dealers are sourcing more product to meet steady demand, while consumers are advised to prioritize safety and reliability while remaining flexible about brands.

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