The Shrinking Market for Bargain Used Cars in Southern California
Overview of Used Car Prices
Finding a good deal on a used car in Southern California has become quite challenging. According to a recent study by iSeeCars, prices of three-year-old used cars have drastically increased in the past six years. The analysis compared sales from early 2025 to sales from early 2019, focusing on vehicles priced under $20,000. In 2019, these budget-friendly cars made up 53% of sales, but that number has plummeted to just 13% in 2025, a staggering 76% decrease.
Reasons Behind the Price Hike
So, what caused this dramatic rise in prices? During the pandemic, new car production slowed down from 2020 to 2022, creating a shortage in the used car market. This scarcity has driven up prices significantly, with the average price of a three-year-old used car in Southern California now reaching $33,200. This is a $10,000 jump compared to 2019, representing a 43% increase. Karl Brauer, an executive analyst at iSeeCars, noted that rising prices have forced buyers to consider older models with higher mileage to stay within their budgets.
Impact on Car Buyers
The increase in car prices is only part of the problem. Auto loan rates have also soared. For example, financing a three-year-old used car today at a 7.4% interest rate would cost around $660 a month, adding up to a hefty $39,600 over five years. In contrast, a car purchased in 2019 for $23,200 with a 4.6% interest rate would only cost $430 per month, totaling $25,800. The 53% increase in monthly payment is a significant burden for many households, especially considering that local wages have only grown by about 32% since 2019.
Nationwide Trends
It’s not just Southern California feeling the pinch. Across the United States, used cars under $20,000 accounted for just 11.5% of sales in 2025, down from 49% six years ago. Most regions showed similar declines, with Boston and Minneapolis experiencing the steepest drops.
What to Do With Your Old Car
With the rising costs of used cars, it may be time to consider selling that old vehicle you’re no longer using. If you’re looking to get rid of your junk car, Cash for Cars Los Angeles is here to help. Get a free quote for your junk car by calling 213-441-3333 or click below where it says “ONLINE QUOTE.” Make the most out of your old vehicle today!
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