According to a study by Edmunds, used cars priced between $10,000 and $15,000 are now nearly 9 years old on average and have roughly 98,000 miles on the odometer. This represents a major shift from 2019, when cars in that same price bracket were four years younger and had 40,000 fewer miles.
Truly affordable used cars are becoming much scarcer. In Q2 2019, used cars sold for under $20,000 made up 55.2% of the market, but that share plummeted to 31.8% by Q2 2026. Cars selling for under $15,000 dropped from 31.6% down to 17.8%.
Ongoing fallout from pandemic-era supply constraints, production disruptions, and new vehicle cost pressures (with new cars averaging over $50,000) continue to drive up demand for used alternatives. The average price for a three-year-old used car hit a record Q2 high of $32,461.
Despite higher prices and older vehicles, buyer demand remains strong. Three-year-old used cars are spending an average of 38 days on dealer lots, pacing the same pace as last year. By all indications, shoppers have not yet reached a breaking point.
Thanks for reading everybody!
-Paul