The used car market has undergone significant changes over the past few years, particularly in Las Vegas, where the availability of vehicles priced under $20,000 has sharply declined. Pete Kelly, a used car manager in Las Vegas, notes that he hasn’t been able to purchase a used car for less than $20,000 at auction for over two years. This trend reflects broader national challenges, including increased competition from national chains and economic factors stemming from the pandemic.
The share of used car sales under $20,000 in Las Vegas dropped from 53.8% in 2019 to 16.5% in 2025, according to data from iSeeCars. Nationally, demand for vehicles has decreased due to high prices and interest rates, although average prices for 3-year-old used cars have risen by 40.9% since 2019. This price surge is attributed to pandemic-related disruptions, such as rental companies selling off inventory and heightened consumer interest in vehicle replacements during that time.
Inflation and tariffs have further exacerbated the situation. The 25% tariff on imported cars and parts during the Trump administration led to increased demand for used vehicles as consumers worried about new car affordability. As a result, the average price of a new car in the U.S. is now around $48,000, with the average 3-year-old used car costing about $31,000.
Despite these challenges, Las Vegas has fared relatively well in maintaining a portion of its sub-$20,000 used car market compared to other major U.S. cities. However, experts like Nicholas Irwin and Chris Hemmersmeier caution that the trend of rising prices is likely to continue, with fewer affordable options for consumers. They advise buyers to take advantage of existing deals while they can, as the landscape for used cars continues to evolve under economic pressures.