The sub-$20,000 used-car market remains hot, as affordability concerns drive demand despite December’s seasonal slowdown.
In November, the average days to turn — or how long a vehicle sits in inventory — for a 1- to 5-year-old used vehicle priced under $20,000 was 40.2 days, down from 40.3 days in October and 40.5 days in September, according to Edmunds data provided to Auto Finance News. Preliminary data for December shows days to turn for the segment nearly unchanged at 40.3 days.
In 2023, days to turn for that vehicle increased by six days from September to December, in line with seasonal trends, according to Edmunds.
Inventory sits for higher-priced cars
On the flip side, days to turn for used vehicles in all other price ranges have increased in the final months of the year, according to Edmunds:
- $20,000 to $25,000: Days to turn hit 41.5 in December, up from 41.3 in November, 40.4 in October and 39.3 in September;
- $25,000 to $30,000: Days to turn rose to 43.3 in December, up from 41.9 in November, 40.8 in October, and 39.6 in September; and
- $30,000 to $35,000: Days to turn climbed to 43.3 in December, up from 42.3 in November, 41.8 in October, and 40.3 in September.
Typically, used vehicles across all price segments see an uptick in days’ supply toward the end of the year as consumers opt for newer vehicles, Ivan Drury, director of insights at Edmunds, told AFN.
“As you’re approaching the end of the year, the car is getting closer to getting older, and a used car isn’t on people’s priority list for purchases,” he said.
At the same time, average transaction prices on new vehicles tend to spike at the end of the year, peaking in December, as more consumers opt for other purchases, and more luxury vehicles are sold, Mark Schirmer, director of industry insights and corporate communications at Cox Automotive, previously told AFN.
Used vehicles priced under $20,000 include 2-year-old Toyota Corolla Cross models, 5-year-old Chevy Cruises, and 3-year-old Honda CR-Vs, according to Big Wheels vehicle pricing data.
Used values to hold steady in 2025
Though used-car prices declined in 2024, prices remain above pre-pandemic levels and are likely to stay steady or potentially increase in 2025, Edmunds’s Drury said.
These factors could push more buyers toward the used market, he said:
- Suppressed inventory, driven by a continued decline in off-lease maturities and limited availability of 1- to 3-year-old units from rental fleets; and
- Possible tariffs that could raise new-vehicle prices.
As a result, there is little evidence to suggest downward pressure on used-vehicle prices.
“I don’t see much indicating we’ll see significant reductions in used-vehicle values,” Drury said. “There are still many holdout buyers waiting for new cars, so I don’t expect a sudden influx of a different buyer base that would impact the used market.”
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