Affordable used cars are in tight supply, forcing budget shoppers to settle for older, higher-mileage models. The average three-year-old car costs about $33,000, per iSeeCars. Three-year-old cars were once the sweet spot: low mileage, past peak depreciation, and advanced safety features.

But those under $20,000 are now just one in nine, down from about half in 2019. Tariffs under the Trump administration and higher borrowing costs pushed up new-car ownership, boosting used demand. A Chevrolet dealer told Cox Automotive there are "not enough under $20,000 that aren't total junk." Used EV prices also rose, per Recurrent, as gas hit $4.29 a gallon (AAA).

Budget shoppers now pay more for older cars: this spring, a $10,000–$15,000 used car averaged nearly nine years old and 98,000 miles, versus five years and 58,000 miles in 2019, per Edmunds. "If you've ever shopped for a used car before, especially pre-Covid, you're going to be floored," said Ivan Drury of Edmunds. Three-year-old cars still sell briskly, spending just over a month on lots. Jon Linkov of Consumer Reports warned averages include pricey trucks and luxury cars. "Gone are the days of the low-mileage $10,000 car," he said.

Recommended used cars included the 2023 Subaru Impreza under $20,000 and 2023 Nissan Altima under $22,000. Linkov advised listing must-haves like backup cameras and blind-spot warning, and not fixating on color. Act fast: the cheapest cars ($5,000–$10,000) sold in under four weeks.

Preapproval for financing helps.