The Decline of Affordable Used Cars in Southern California
The availability of affordable used cars in Southern California has significantly decreased over the past six years. A study by iSeeCars analyzed the sale prices of three-year-old used cars in 50 U.S. markets, including Southern California, and the results are alarming.
The Numbers Behind the Decline
In 2019, a substantial 53% of used cars sold in Southern California were priced below $20,000. Fast forward to 2025, and this figure has plummeted to just 13%. This represents a staggering 76% drop in the market share of bargain used cars. The average price of a three-year-old used vehicle has risen by approximately $10,000, reaching $33,200, which translates to a 43% increase.
Why Prices Are Surging
This significant price increase can largely be attributed to the pandemic’s impact on new car production between 2020 and 2022. According to Karl Brauer, an analyst at iSeeCars, the scarcity of new cars has created a tighter used car market. As prices climb for popular models, budget-conscious buyers are compelled to opt for older vehicles with higher mileage to stay within their financial limits.
Financial Impact on Buyers
Current auto loan rates are also causing a budget crunch for potential buyers. Financing a three-year-old car for $33,200 at a 7.4% interest rate results in monthly payments of $660, accumulating to $39,600 over five years. In 2019, buying the same vehicle at a lower price of $23,200 and an interest rate of 4.6% would have meant monthly payments of $430, totaling $25,800 over five years. This shift raises the financial burden by 53% on households.
A Nationwide Trend
The decline in affordable used cars isn’t just a local issue. Nationwide, only 11.5% of used cars sold for under $20,000 in 2025, down from 49% in 2019—a 77% decrease. Notably, markets like Boston and Minneapolis saw even steeper declines, reflecting a broader economic trend.
Conclusion
In summary, car buyers in Southern California face a shrinking selection of affordable used cars, with prices at an all-time high. For those looking to sell their old vehicles amid these changes, Cash for Cars Los Angeles offers a convenient solution. Get a free quote for your junk car by calling 213-441-3333 or clicking below where it says “ONLINE QUOTE.”
Source: Jonathan Lansner, Southern California News Group.
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