A car buying expert has warned buyers that it’s getting harder to find used cars under $20,000.
The YouTuber created a video that gives people tips for strategic car buying in this market.
YouTuber Kevin Hunter, aka The Homework Guy, made a video with Elizabeth, aka The Homework Gal.
Kevin, who told viewers he has over 14 years of experience providing auto advice on YouTube, offered tips current buyers might consider.
Be more flexible
Kevin and Elizabeth told buyers to be more flexible in choosing the types of cars they wanted.
They said everything a buyer might want or expect from their next car is unlikely to be available in this market.
The pair added that it could take a year or two for the situation to improve as inventories rise.
Elizabeth said, “As far as things like color go, you have three or four options that you’re open to.”
The couple stressed that being flexible doesn’t mean being willing to pay higher prices.
Elizabeth added, “Kevin doesn’t mean that you should be more open to paying astronomically high fees or that you should just start accepting the fact that enforced surcharges are a part of life now.”
Take advantage of after-market options
Kevin and Elizabeth advised viewers to use aftermarket websites and stores to purchase accessories and features they couldn’t find when buying a car.
Kevin said: “If the stock wheels that a vehicle comes with aren’t your favorite, get your own tires and rims.
“Sell stock to offset cost of replacement.”
The couple also made a video sharing how and why used car prices have skyrocketed in recent years.
Kevin said: “New model cars under 20,000 in 2023 will become a rare commodity.”
The couple told viewers that in 2019, over 50% of the used car market was made up of vehicles between one and five years old and under $20,000.
According to a study by iSeeCars.com, that percentage dropped to just 12% in 2023.
Kevin and Elizabeth shared that the median price of a one to five year old car increased 48% from $23,351 in 2019 to $34,491 in 2023.
The study also found that the prices of the best-selling used cars in the market rose even faster than average.
The top three selling used cars were the Ram 1500, the Toyota Corolla and the Toyota Camry.
Elizabeth said, “Buyers realized that if they paid more for a used vehicle, they would be doing it for one in which they had great confidence, both for its short-term practicality and for its long-term reliability and quality.”
Kevin explained that these numbers could show how used car prices have increased.
He said: “A testament to the extent to which used car values have risen in recent years as the shortage of new cars has pushed more consumers into the used car market.”
The concerns of used car buyers didn’t stop there, however, as Kevin added that recent surveys had also shown that the average mileage of used cars in the market had also increased.
Kevin said, “This suggests consumers are keeping their cars longer and getting more miles on them.”
“Either they can’t afford higher new and used car costs or they don’t want to pay them.”