Are Low-Income Workers Being 'Priced Out Of The Entire Car Market?' Used Cars That Were Once Affordable Are Now 'Way Out Of Reach'

Used cars that once cost less than $20,000 are quickly disappearing from the market, and low-income workers are asking whether they’re being “priced out of the entire car market.” Even people working full-time for $16 to $18 an hour say they can no longer find basic, reliable vehicles they can afford.

Sub-$20,000 Cars Are Nearly Gone

Before the pandemic, more than half of all 3-year-old used vehicles in the U.S. were priced under $20,000. Today, that number has dropped to just 11%, according to a recent iSeeCars.com study. The average price of a 3-year-old used car is now $32,635—nearly $9,500 more than it was in 2019.

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"There's very little negotiation going on for used cars because demand is so high," iSeeCars Executive Analyst Karl Brauer told the Detroit Free Press. “We're now in 2025 and the cars that would be three years old would have been built around 2021 to 2022 and they are not there in terms of the volume the used market needs.”

Many buyers now find that $20,000 gets them a six-year-old car with more than 70,000 miles instead of a newer car with 30,000 miles. "If you're forced to buy an older, higher mileage car, thankfully older cars are better than they used to be," Brauer said.

But working-class Americans say even those cars are “way out of reach” when insurance, interest, and repair costs are factored in. In a widely upvoted Reddit thread on r/povertyfinance, many users shared that they're giving up on car ownership altogether. Several said they're now relying on e-bikes, public transit where available, or renting cars occasionally.

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As one person wrote, “I know cars aren't supposed to be ‘cheap toys,’ but transportation is a basic need.” “It feels like unless you're middle class or higher, you're just not welcome in this market anymore.”

Insurance is another dealbreaker. Multiple people reported monthly premiums of $400 or more, even with clean records. That expense alone is enough to keep many from owning a vehicle, especially younger drivers with no history.

According to Brauer, a major factor behind the price surge is supply chain disruption. When automakers paused production during the pandemic and later faced semiconductor shortages, new car output dropped. That reduced the number of used vehicles in today's market.

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The most popular used models have been hit especially hard. In 2019, 97.6% of 3-year-old Honda Civics were available for under $20,000. Today, just 5.7% are. Similar price jumps have hit the Toyota Corolla, Chevrolet Equinox, and Kia Sportage, Brauer told the Detroit Free Press.

On top of that, inflation and increased demand from people relocating to suburbs have driven prices even higher, not to mention the 25% tariffs President Donald Trump imposed on most foreign-made cars in April. Many who used to lease cars are now buying them out, reducing supply further.

Even with smart shopping, Brauer doesn't see prices returning to pre-pandemic levels. “I think it's unlikely we'll see one- to five-year-old vehicles available for around $20,000 like we did before the pandemic,” he said. "That's not going to come back."

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