The Decline of Cheap Used Cars in Southern California
The chances of scoring a good deal on a used car in Southern California have plummeted in recent years. According to a study by iSeeCars, there has been a dramatic shift in the availability of affordable options.
The Study Findings
In a comparison of the first six months of 2025 to the same period in 2019, iSeeCars found that the percentage of used cars selling for under $20,000 dropped from 53% to just 13% in Southern California. This is a staggering 76% decrease, reflecting a major change in the auto market. The average price of a 3-year-old used car jumped from $23,200 to $33,200, which amounts to a 43% increase.
Why Are Prices So High?
The reason for this surge in prices is tied to the pandemic, which caused a significant slowdown in new car production from 2020 to 2022. Karl Brauer, an executive analyst with iSeeCars, explains that this shortage has made used cars scarce, pushing buyers toward older models that are often more worn down but more affordable.
Budget Challenges for Buyers
On top of rising prices, prospective buyers face higher auto loan rates. As of now, financing a typical 3-year-old used car at a rate of 7.4% would result in monthly payments around $660. Over five years, this totals approximately $39,600, significantly affecting household budgets. Six years ago, a buyer would have faced much lower costs due to lower prices and interest rates.
Not Just a Local Issue
This trend isn’t unique to Southern California; it is reflected nationwide. Across the United States, only 11.5% of used cars sold for under $20,000 in 2025, a sharp drop from 49% in 2019. The average nationwide price for used cars soared by $9,400, up to $32,600 from $23,200 during the same period.
Other California Cities Affected
Cities outside of Southern California are experiencing similar drops in affordable car sales. For instance, in Sacramento, sales of low-priced used cars fell from 51% to just 12%. Other cities like San Francisco and San Diego also saw marked declines, reinforcing that car shoppers across California are feeling the pinch.
The Best Regions for Bargain Hunters
If you’re still on the lookout for a bargain, cities like Miami and Las Vegas are relatively better, with higher percentages of affordable used car sales compared to Southern California.
Conclusion
The used car market is changing, and finding a good deal is more challenging than ever. If you have an old car sitting around and you’re looking to upgrade, consider getting rid of it.
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