Where Did the Under-$25K Used Cars Go?

Ask any payment shopper today where the affordable used cars went, and you’ll get the same answer: “They’re either gone or garbage.” The sub-$25K segment that used to be your built-in affordability story has thinned out fast, and it’s forcing dealers to rethink how they stock, price, and present “value” on the lot.

1. The Vanishing Budget Car

Data from multiple sources tells the story clearly: the cheap stuff is disappearing. Kelley Blue Book reports that sales of vehicles priced at $25,000 or less have fallen sharply over the last five years, as OEMs shifted mix toward higher-priced models and discontinued true entry-level cars.

At the same time, the average used listing price continues to hover in the mid-$20Ks nationally, leaving fewer clean, late-model options under that psychological $25K ceiling.

• New vehicles above $50K are normalizing — pulling used prices up with them.
• Owners are keeping cars longer, reducing the supply of quality, low-price trades.
• Fleet/econ models that used to feed sub-$25K lanes are being retired or repriced.

2. What This Means for Dealers

If your strategy is still “throw some cheap cars on the back row and they’ll sell,” you’re going to disappoint both shoppers and your statement. The modern affordability shopper is informed, payment-sensitive, and willing to drive or click further to find a store that respects their budget without dumping junk on them.

• You can’t rely on accident-heavy and rough units as your only low-price solution.
• You can’t hide fees or play games — that crowd reads reviews.
• You need a repeatable playbook for sourcing and merchandising real value under $25K.

3. Building a Profitable Sub-$25K Strategy

The answer isn’t “we can’t do it.” The answer is tighter standards and smarter channels:

• Older but honest: 5–8 year-old vehicles with clean histories and transparent recon.
• Targeted trades: Lean into trades from loyal service customers and payment-sensitive buyers.
• Local partnerships: Credit unions, fleets, and small businesses looking to rotate units.
• Story-first merchandising: Explain why each unit is a smart buy, not just a cheap one.

Affordability shoppers don’t expect perfection; they expect clarity. If you become the store that tells the truth about “value cars,” you win trust and turn.

4. Pricing & Presentation: Own the Value Narrative

For sub-$25K, small moves matter:

• Price vehicles around key payment breakpoints — and show example payments.
• Lead with fuel savings, reliability records, and cost-of-ownership, not just sale price.
• Use clean photos and honest condition notes so buyers aren’t surprised on arrival.

This is where a disciplined, repeatable framework turns “cheap inventory” into a branded Affordable Inventory Program your market can trust.

5. Download: Affordable Inventory Playbook Checklist

Use this one-pager with your buyers and managers to design a sub-$25K strategy that’s intentional, on-brand, and profitable.

📥 Download the Affordable Inventory Playbook Checklist (PDF)

6. Join the Conversation

What percentage of your inventory is truly under $25K right now — and how much of it would you proudly sell to a friend or family member? Be honest. Share your number and your challenge in the comments, or connect with me on LinkedIn to compare strategies.