Used Market Inflation Skyrockets
Pandemic production slowdown has shrunk availability for budget shoppers.

3-year-old Toyota Corollas are no longer in the under-$20,000 segment, according to iSeeCars.com's research.
Toyota
Used cars selling for less than $20,000 are quickly becoming endangered species, based on research of 3-year-old units on the market.
The iSeeCars.com study 2.6 million cars in that segment found just about 12% of them are priced under $20,000 compared to 49% before the pandemic. Their average price is $32,635, up 41% since 2019.
Used passenger car inflation was the sharpest of all types, the research found, up 49%, followed by pickups at 29%, and SUVs at 15%, iSeeCars said.
Pandemic-era vehicle production curbs brought reduced used-vehicle supply and the resulting price inflation. Consequently, buying used now costs about $10,000 more, the automotive search engine and research website said.
“Many car buyers are now priced out of late-model used cars, forcing them to consider older models with more miles to fit within their budget,” said Executive Analyst Karl Brauer in the report.
Consumers shopping used with a $20,000 budget now have just about 12% of 3-year-old stock to choose from, in contrast to 49% in 2019, he pointed out.
Some popular models are no longer in that more affordable segment, including the Chevrolet Equinox, Honda Civic and Toyota Corolla.
The report didn't mention U.S. trade tariff effects, but used prices have recently risen as a result of trade policy on the overall auto industry.
LEARN MORE: A Mirage or an Opportunity?
Originally posted on Auto Dealer Today
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