Used car market shifts as inflation and costs impact buyers

The used car market is experiencing significant shifts driven by inflation and changing consumer demographics. In the United States, the market share for vehicles priced under $20,000 has dropped to approximately 32% in the second quarter of 2026, down from 55.2% in 2019. While budget-friendly vehicles sell faster, buyers face trade-offs in vehicle age and condition. For instance, cars in the $10,000 to $15,000 range now average 8.7 years of age, compared to 4.7 years in 2019.

In the United Kingdom, there is a burgeoning demand for high-mileage vehicles as cost-of-living pressures squeeze budgets. Data indicates that over 10% of the 42.5 million cars on UK roads have between 100,000 and 150,000 miles. Industry experts suggest that as modern vehicles are built to last longer, buyers are becoming more comfortable with higher mileage if the service history is well-maintained.

Financing remains a challenge for budget-conscious buyers. In the US, used-car loan interest rates averaged 11.2% in the second quarter of 2026, significantly higher than the 6.4% average for new-car loans. Borrowers with credit scores below 500 may face rates exceeding 21%.