Looking for a car under $30K? These affordable vehicles are some of the hardest to find
"We've seen a steady decline in affordable vehicles over the past several years, and the situation has only worsened in 2025 with the added pressure from looming tariffs," said Kevin Roberts, director of economic and market intelligence at CarGurus.
While inflation can share some of the responsibility, the under-$30K market of vehicles has shrunk at a rapid clip. "On Jan. 1, 2020, 37.3% of new vehicle listings had an average list price under $30,000," Roberts said. "By Jan. 1, 2025, that share had dropped to 13.4%, and as of mid-June, it was down again to just 12.2%."
CarGurus lists more than 4 million new and used cars on its site. Among those listings, they analyzed new vehicles and placed them in seven categories ranging from under $30K to over $80K:
Inflation is the only factor limiting lower-priced cars. Roberts said the industry is still feeling the effects of the 2021 microchip-shortage: "When semiconductor supply was tight, automakers prioritized higher profit-margin vehicles and trims, which pushed average prices higher."
Worries about tariffs tightened the supply of affordable cars even more. Roberts said buyers flocked to car dealers in March and early April and focused on the most affordable options because they were concerned tariffs would push prices even higher.
Which vehicles models under $30K are hardest to find?
"Automakers generally continue to make current model year vehicles up to the summer shutdowns around July 4th," said Roberts. "So the decrease in availability of these vehicles is not due to lack of supply but rather an increase in consumer demand for affordable vehicles."
The only outlier is the Chevrolet Malibu. Roberts said the Malibu will go out of production after the current 2025 model year, which as led to an 80% decline on CarGurus.com.
The used car market is also seeing a rise in prices
During the past year, the number of used vehicles on CarGurus has increased but so have the prices. The average price for a used vehicle on the site in mid-June was $28,900. That's more than an $8K increase from the Jan. 2020 average of $20,600. With those increases comes trade-offs: "Many of the vehicles are older and have higher mileage," said Roberts.
The 2021 microchip-shortage also has rippled into the used market.
"One trend we've been tracking closely is the relative shortage of younger used vehicles," Roberts said. "Those model years: 3-year-old vehicles are up in price 5.4% year-over-year, and 4-year-old vehicles are up 8.0%, while used prices for all other age groups are up just 0.2%."
Tariffs could impact pricing and incentives for future models
As for the rest of the year, Roberts thinks tariffs might impact pricing of 2026 models that are due to come out this year. "I think it's going to be a lot more metered out, though. You may not see it as much as an MSRP increase but the cost could be rolled into reduced incentives as well."
-- Notes ------
Do you believe there's a decline in affordable cars right now? Has the problem gotten worse over the last 6 months?Absolutely. We've seen a steady decline in affordable vehicles over the past several years, and the situation has only worsened in 2025 with the added pressure from looming tariffs. To put it in perspective, on January 1, 2020, 37.3% of new vehicle listings had an average list price under $30,000. By January 1, 2025, that share had dropped to 13.4%, and as of mid-June, it was down again to just 12.2%.
If there is a decline in affordable cars, why do you think the more affordable vehicles are harder to find? (Are buyers responding to interest rates, prices or something else?)
Affordable vehicles have become harder to find due to a mix of factors. First, inflation over the past five years has driven up prices across the board - this includes the cost of vehicles, along with associated costs like interest rates and insurance premiums that factor into a car buyer's monthly payment calculation. Second, we're still seeing lingering effects from the chip shortage in 2021. When semiconductor supply was tight, automakers prioritized higher-margin vehicles and trims, which pushed average prices higher. Now that we're back in a buyer's market, lower-priced vehicles haven't returned as quickly as you'd expect. On top of that, fears that tariffs would push prices even higher led to a surge in demand in late March and early April, with buyers especially focused on the most affordable options.
As stated in your mid-year report. Why is there an abundant supply of more expensive used vehicles? Any trends in the used market that have bubbled up since January of this year?
We're seeing more used vehicles on the market than in previous years, but that broader selection comes with trade-offs. Many of the vehicles are older and have higher mileage. Used models haven't been immune to inflation either, with average prices rising from $20,600 in January 2020 to $28,900 by mid-June. (Prices were even higher at the peak of the chip shortage.) One trend we've been tracking closely is the relative shortage of younger used vehicles. That's a direct result of reduced new vehicle production during the chip shortage, which left fewer recent-model trade-ins entering the used market. This has translated into higher prices for those model years: 3-year-old vehicles are up 5.4% year-over-year, and 4-year-old vehicles are up 8.0%, while used prices for all other age groups are up just 0.2%.
As stated in your mid-year report. Why is there an abundant supply of more expensive used vehicles? Any trends in the used market that have bubbled up since January of this year?
We're seeing more used vehicles on the market than in previous years, but that broader selection comes with trade-offs. Many of the vehicles are older and have higher mileage. Used models haven't been immune to inflation either, with average prices rising from $20,600 in January 2020 to $28,900 by mid-June. (Prices were even higher at the peak of the chip shortage.) One trend we've been tracking closely is the relative shortage of younger used vehicles. That's a direct result of reduced new vehicle production during the chip shortage, which left fewer recent-model trade-ins entering the used market. This has translated into higher prices for those model years: 3-year-old vehicles are up 5.4% year-over-year, and 4-year-old vehicles are up 8.0%, while used prices for all other age groups are up just 0.2%.
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