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It's still possible to find used cars for under $20,000 — but buyers may have to make bigger trade-offs than they did in the past.
About 32% of all used-car sales in the second quarter of 2026 were for vehicles under $20,000, down sharply from 55.2% for the same quarter in 2019, according to Edmunds, an auto research site.
The lower the price, the more quickly the vehicles sold: A used car in the $5,000 to $10,000 range spent an average 25.4 days on a dealer lot, compared with 37.8 days for vehicles costing $20,000 to $25,000 and 44.3 days for those priced at more than $50,000, according to Edmunds.
These trends suggest consumers are seeking out more affordable cars against a backdrop of high inflation for vehicles and in the U.S. economy overall, auto experts said.
Of course, the lower price is only one measure of the car's value. Consumers may need to weigh price against factors like car age and mileage — and the potential for costly repairs and maintenance, experts said.
"As a general rule, the cars that are lower in price are going to be older than they used to be, with more miles than they used to have," said Joseph Yoon, consumer insights analyst at Edmunds.
Used-car prices up 29% from 2019
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The average list price for a used car in July was $27,028, according to Cox Automotive, a market research firm.
Overall, used-car prices were about 29% higher in July than in July 2019, before the Covid-19 pandemic — roughly equal to the general U.S. inflation rate over that time, according to the consumer price index.
"Today's used-car prices are among the most powerful examples of the affordability challenge facing consumers," said Karl Brauer, executive analyst for iSeeCars, a used-car research site.
It's also important for buyers to remember that additional expenses may come with buying a used car that's relatively old, he said.
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"In general, buying an older used car means a lower up-front cost, but higher post-purchase maintenance and repair costs," Brauer said.
The average used car in the $15,000 to $20,000 price range was 6 years old and had 71,192 miles as of the second quarter this year, according to Edmunds. By comparison, the average car in the same quarter of 2019 was only 3.4 years old and had 41,851 miles.
The average vehicle costing $10,000 to $15,000 is 8.7 years old this year — up from 4.7 years in 2019, according to Edmunds. The average car had 98,222 miles this year, up from 58,250.
"Even if the car in general is reliable, stuff just wears out," Yoon said.
Consider your used-car loan terms
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In addition to the likelihood for higher maintenance and repair costs, interest rates for loans on preowned autos are generally higher than those for new cars, experts said.
In the second quarter of 2026, the average interest rate on a used-car loan was about 11.2% and the average length of the loan was 5.6 years, according to a report from Experian, a credit reporting company.
By comparison, the average loan for a new car had a much lower interest rate — 6.4% — and an average length of 5.7 years, the Experian report shows.
Of course, new-car loans are generally larger than those for used-car buyers. The average amount that buyers financed for a new car was $43,610 in the second quarter, with a monthly payment of $765, according to Experian.
Meanwhile, the average financing amount for used-car buyers was $27,852, with an average $542 monthly payment. Roughly 1 in 3 loans for a used car came with a payment under $400, according to Experian.
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The interest rate on an auto loan depends at least partly on a buyer's credit score.
The lower the credit score, the higher the interest rate for which the buyer will qualify — which means paying more in interest over the life of the loan. Buyers with low credit scores — below 500 — pay an average interest rate exceeding 21% for a used-car loan, according to Experian.
Additionally, potential buyers should consider the likely lifespan of the car when determining the length of their loan, Yoon said.
"If you buy a 7-year-old used car and take out a six- or seven-year car loan, and then three or four years into the loan you have something catastrophic happen and you need to replace the car, you're going to owe a bunch of money on that loan or have to roll it into [the loan] for your next car," Yoon said.
Correction: Overall, used-car prices were about 29% higher in July than in July 2019, before the Covid-19 pandemic. An earlier version misstated the time frame.
