The Decline of Affordable Used Cars in Southern California
Overview of the Used Car Market Shift
Over the past six years, finding a good deal on a used car in Southern California has become increasingly difficult. A recent study conducted by iSeeCars analyzed the sale prices of 3-year-old used cars and compared the first half of 2025 to the same period in 2019. The findings are startling—only 13% of used car sales were under $20,000 this year compared to 53% six years ago. This represents a 76% drop in the market share of affordable used cars.
Reasons Behind Rising Prices
The surge in prices for used cars is related to a significant drop in new car production during the pandemic years of 2020 to 2022. As a result, buyers find themselves vying for fewer vehicles at higher prices. The average cost of a 3-year-old used car in Southern California has skyrocketed to $33,200, which is up $10,000 or 43% from 2019.
Budget Implications for Buyers
Not only are the prices higher, but auto loan rates have also increased, making vehicle financing more burdensome. For instance, a buyer in 2025 financing a $33,200 car at a 7.4% interest rate would pay approximately $660 a month over five years, totaling $39,600, including interest. In contrast, six years ago, the same vehicle would cost around $430 a month at a much lower interest rate of 4.6%, bringing the five-year total to just $25,800. This translates to a 53% larger financial strain on buyers today.
National Trends
Interestingly, the decline in affordable used cars is not unique to Southern California. Nationally, only 11.5% of used cars sold were priced under $20,000 in 2025, dropping from 49% six years earlier—a 77% decrease. Cities like Boston and Minneapolis reported even more dramatic falls in the availability of these bargain vehicles.
Conclusion: Local Impacts
The trends in places like Sacramento, San Francisco, and San Diego also reflect this trend, with substantial drops in affordable car sales. For Southern California and beyond, potential car buyers face a challenging market filled with rising costs and dwindling choices.
Call to Action
If you’re looking to move on from an old vehicle, consider reaching out to Cash for Cars Los Angeles. We can help you junk your car quickly and easily. Get a free quote by calling us at 213-441-3333 or clicking below where it says “ONLINE QUOTE.” Don’t miss the chance to make some cash while simplifying your life!
Source: iSeeCars study on used car pricing trends.
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