The used car market in Las Vegas is experiencing significant shifts, marked by a dramatic decline in the availability of vehicles priced under $20,000.
Pete Kelly, the used car manager at Jim Marsh Kia and Jim Marsh Chrysler Jeep, has not purchased a used car below this price point at auction for over two years, despite his efforts.
The pandemic has drastically altered the landscape, leading to a scarcity of affordable options and growing competition from national chains that are accepting slimmer profit margins to attract buyers.
According to a June report from iSeeCars, the proportion of used car sales priced under $20,000 in Las Vegas has fallen sharply from 53.8 percent in 2019 to just 16.5 percent in 2025.
This trend parallels a nationwide decline in demand for vehicles amidst soaring prices and high-interest rates, which have spiked following a brief tariff-induced panic earlier this year.
Notably, the average price of 3-year-old used vehicles has surged by 40.9 percent since 2019, a trend attributed largely to the pandemic and its aftermath.
Nicholas Irwin, an associate economics professor at UNLV, explains that the pandemic triggered a wave of used car sales, especially as rental companies liquidated their inventories to survive.
Irwin also highlights inflation’s role in further driving up the prices for new car buyers, exacerbating the already challenging market conditions.
Currently, the average new car in the U.S. is priced around $48,000, while the average 3-year-old used car now costs approximately $31,000, compared to $21,000 in 2019, according to recent data from Edmunds.
Additionally, President Donald Trump’s imposition of a 25 percent tariff on imported cars and auto parts created apprehension among American consumers about affording new vehicles, which increased the demand for used cars accordingly.
Despite these issues, the situation in Las Vegas appears to be slightly better than in many other major U.S. metro areas.
Among the top 50 most populous cities in the nation, Las Vegas recorded the third smallest decline in the share of sub-$20,000 used cars since 2019.
Chris Hemmersmeier, president and CEO of Jerry Seiner dealerships, remarked that while the initial demand for new cars has cooled nationwide, it has increased in Las Vegas, contributing to rising used car prices.
He speculates that as inflation continues to rise, the benchmark for affordable vehicles may also increase, possibly rising to $23,000 or $25,000 in the coming years.
In the short term, dealership professionals advise consumers to seize good deals on used cars while they still exist.
Kelly pointed out an example with a 2018 Volkswagen Passat priced at $15,000, indicating strong interest in such vehicles.
However, the overarching challenges faced by the used car market are significant and multifaceted.
Factors ranging from COVID-19-related supply constraints to inflation, tariffs, and high-interest rates have all played a role in pushing prices upward.
Irwin cautions that ongoing price increases may lead to a decline in both the stock and quality of the remaining used cars priced below $20,000, which could adversely affect working-class families who rely on affordable transportation.
He emphasizes that this situation adds new financial pressures to an already burdened demographic.
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