Isaiah Steinberg, Las Vegas Review Journal
Pete Kelly, second-hand car manager for Jim Marsh Kier and Jim Marsh Chrysler Jeep in Las Vegas, has not purchased a used car at auction for under $20,000 in more than two years.
Since the pandemic, he has to compete with national chains that want to embrace slimmer profit margins with fewer used cars under $20,000.
Nationally, demand for vehicles has been declining in recent months due to high prices and interest rates following short tariff-induced panic in March.
According to an ISEECARS survey, despite a temporary decline in demand, the average price of used US cars for 3-year-olds has increased by 40.9% since 2019.
It’s largely due to the pandemic, said Nicholas Irwin, an associate economics professor at UNLV.
“Thanks to rental companies that sell a portion of their inventory, there are many second-hand cars that were sold to many buyers, and there is a general interest in replacing the car during that period,” Irwin said.
Irwin said that inflation has exacerbated the situation for new car buyers and raised prices further after the pandemic.
Recent Edmunds data shows that the average US new car costs around $48,000, while a used car for three years averages around $31,000. This is an increase from around $21,000 in 2019, an average of three years ago cars.
President Donald Trump’s 25% tariffs on imported cars and auto parts have surged demand for used cars, prompting many Americans to worry about not being able to afford a new car, Irwin added.
“I don’t think the proportion of cars under $20,000 will rise as inflation continues to rise,” said Chris Hemmersmeyer, president and CEO of Jerry Sayner’s Dealers. “I think the new standards will continue to rise, so it could rise to $23,000 or $25,000 over the next few years.”
In the short term, consumers will need to jump on a deal with cars that are still usable, Hemmersmeier and Kelly said.
“Outside my office right now is the 2018 Volkswagen Passat, which I’m looking for $15,000,” Kelly said. “The car probably won’t be here on Friday.”
Various factors, from supply shortages in the Covid era to inflation, tariffs and high interest rates, have led to a massive rise in used car prices across the country.
Irwin said the increase would reduce stock and quality of the remaining $20,000 second-hand cars.
“This is just a cost that puts pressure and burden on working-class families,” Irwin said.
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Original issue: July 3, 2025, 6:20pm EDT
