Buying a new car has always been a significant purchase, but as the years march on, it’s a purchase that’s getting more expensive, and therefore more and more out of reach for many motorists in the US. Thankfully, shopping new isn’t the only way to get behind the wheel of a car, as there is always the used market to consider.
However, the latest research conducted by Edmunds reveals that even the used market is beginning to squeeze buyers, as the average price of a three-year-old vehicle peaked during Q2 of 2026 at an all-time high of $32,461.
A Brand-New Toyota Or A Three-Year-Old Commuter
2026 Toyota RAV4Toyota
That figure of $32,461 places the average transaction price for a three-year-old vehicle in the US higher than that of a brand-new base-model Toyota RAV4. That’s quite a significant price point for used prices to have breached, as not only has an all-new generation of the RAV4 just debuted, but it’s also America’s best-selling SUV, so this isn’t any random comparison.
Digging further into the report’s findings, the $32,461 figure represents a hike in average transaction prices of 4% since Q2 last year, and a massive 15.5% hike since this same point five years ago, when pandemic-related supply constraints first began having an effect. In other words, that’s roughly $5,000 extra commanded from a three-year-old used car today than what was asked back in 2021.
That places an interesting dilemma in the hands of the typical used-car shopper: Do they continue to opt for a secondhand model, which has supposedly already taken the bulk of its depreciation hit, or do they take that same sum of cash and instead take home a 0-mile, fully warranty-backed Toyota RAV4? And the squeeze doesn’t stop at $32,000 – for buyers working with $10,000 or $20,000, the data is even more sobering.
At $15,000, A Kia Is Twice As New As A Ford Or Toyota – Here’s What the Data Actually Shows
2020 Honda AccordHonda
Of course, not everyone looking for a used car is specifically hunting for a three-year-old model with $32,461 in their pockets. Many are looking to part with far less cash, perhaps between $10,000 and $20,000, and the data within this bracket is just as interesting, especially when you break down the facts brand by brand.
2015 Honda Civic Sedan Blue Front View DrivingHonda
Someone looking to part with between $15,000 and $20,000 would be able to net themselves a relatively new, low-mileage Kia – something like a 3.3-year-old model with just north of 48,000 miles on the clock, using industry averages. It’s a similar story for those after a Nissan or Hyundai, too – these three brands net buyers the newest and least-traveled used cars in that price bracket.
However, should that same shopper fancy a Ford or Toyota, the outlook is very different indeed. That same $15,000 to $20,000 outlay picks up a seven-year-old Ford with around 85,000 miles on the clock, which is essentially a vehicle twice as old and twice as traveled as a Kia, Hyundai, or Nissan of the same value.
The Pool Of Sub-$20,000 Used Cars Has Shrunk By Nearly Half Since 2019
2020 Honda Accord rear 3/4 angle in gray while parkedHonda
Picking one brand over another can have a huge impact on the condition of the car buyers receive, but it’s also worth noting that this pool of sub-$20,000 cars is diminishing, and fairly quickly, too. Between Q2 2019 and now – seven years – the number of used cars sold below that threshold dropped from 55.2% to 31.8%, an almost 25% drop.
Similarly, cars below $15,000 went from making up 31.6% of the market to just 17.8% – that’s a near-50% drop-off, so what are people buying instead? Percentage-wise, the $50,000-and-up segment of the market is quite small, at only 8.3%, but it’s roughly four times higher than it was in 2019.
$10,000 Barely Scrapes The Surface Today
As for those with between $10,000 and $15,000 in their accounts, ready to be allocated towards a new-to-them car, the options open to them are not half as attractive as they would have been a few years ago. In 2019, that price point netted buyers a vehicle that was 4.7 years old on average, with only 58,250 miles on the clock. Today, that same amount buys an 8.7-year-old car with 98,222 miles – four years older and 40,000 miles higher.
Buyers Are Still Chasing Cheaper Cars
2019 – 2026 Toyota Corolla Hatchback exteriorToyota
What’s telling is that cars in the lower price brackets are selling incredibly fast; it takes only 25 days on average for a dealer to shift a car which sits within the $5,000–$10,000 range. This surge in pricing isn’t consumer-led, as buyers are still rushing to secure lower-priced vehicles. It’s just that the cheaper cars are getting older and now carry significantly more miles, which in turn makes them a less attractive proposition from a reliability standpoint, forcing buyers to spend more on newer, lower-risk options.
As for three-year-old vehicles, which, as we’ve covered, carry an average transaction price of $32,461, these take 38 days on average to shift. Not terribly long, and not quite so long as $50,000+ cars, which require 44 days of sitting on average before they shift, but notably slower than cars at the cheaper end of the market.
What all this means is that buyers with less cash at their disposal have less time to shop around and less time to negotiate a good deal, whereas buyers willing to spend $30,000+ are afforded an extra 13 days on average to consider their options before a sale is claimed by someone else.
Others Are Keeping Their Cars Longer To Avoid Reaching Into Their Pockets
2013 Audi A4 front 3/4Audi
None of the above paints a particularly bright picture of used-car shopping for those with modest budgets, which might explain why the average motorist is instead choosing to hold onto their car longer, rather than selling it and buying something newer. According to the latest data from the American International Automobile Dealers Association, the average age of a car on US roads right now is 13 years – a significant 10% increase in the last decade alone.
Older cars on the road naturally equate to cars with higher mileage and more money spent on repairs and maintenance, but it would appear that’s the reality drivers prefer over paying thousands more for a replacement. And, given the above data which highlights how the ages and mileages of cars within attainable brackets are soaring, it doesn’t exactly come as a surprise.
A 13-Year-Old Car Today Isn’t A Bad Ownership Proposition
The 2012 Volkswagen Passat 2.0TDI could reach 800 miles on a single tank of diesel.Volkswagen
Back in 2016, a 13-year-old car would have meant driving a 2003 model, which likely would have offered very little in the way of modern infotainment or safety equipment. However, in the present day, a 13-year-old car is less out of touch than most people might think – even a cheaper 2013 car can be remarkably well-equipped.
Take the 2013 Volkswagen Passat as an example. Buyers were presented with three engine options – a 2.5-liter inline-five, a 3.6-liter VR6, or a 2.0-liter turbo diesel – and all have proven to be remarkably durable power plants in the years since. Volkswagen boasted that the car comfortably fits five adults; it also sported a Fender-developed nine-speaker audio system paired with a 6.5-inch touchscreen infotainment system in most models, along with a comprehensive suite of active and passive safety features. The Passat is just one example – no doubt a 2013 Camry, Accord, RAV4, A4, or any other mass-market commuter model would be just as suitable.
Sure, neither the Passat nor its contemporaries have modern must-haves like Apple CarPlay or Android Auto, but considering a mid-range automatic SEL model can be picked up for a little over $8,000, does that really matter? Technophiles could always retrofit a modern head unit, and chances are, that’s exactly the sort of upgrade many are making, rather than paying well over $32,000 for a 2023 replacement.
Sources: AIADA, Edmunds.
