Used car affordability declines as entry-level prices rise

Data from Edmunds for the second quarter of 2026 indicates a significant shift in the used vehicle market, characterized by rising prices and a shrinking supply of affordable options. The average transaction price for a three-year-old used vehicle reached a record second-quarter high of $32,461, representing a 4% increase from the previous year and a 15.5% increase since Q2 2021.

Affordability has declined sharply at the entry level. Since Q2 2019, the share of used vehicles priced under $20,000 has dropped from 55.2% to 31.8%. Similarly, the share of vehicles priced under $15,000 has nearly halved, falling from 31.6% to 17.8%. Conversely, the market share for vehicles priced above $30,000 has more than doubled, rising from 16.8% to 35.8%.

For consumers maintaining a budget of $10,000 to $15,000, the purchasing power has diminished; such a budget now secures a vehicle that is approximately four years older and has nearly 40,000 more miles than a comparable purchase in 2019. Despite these higher costs, three-year-old vehicles continue to sell quickly, averaging 38 days on dealer lots.