How to Money · Friday, September 11, 2026
The market for used cars under $20,000 is exceptionally competitive, with a third of all used car sales falling into this category. Hosts advised patience and thorough research, emphasizing that depreciation is the largest cost of car ownership, often exceeding fuel and maintenance expenses.
“But cars under $20K now, that is, those are, they're a hot commodity because people want something reliable, but they want something inexpensive.”
“And something like a third of all used car sales in the second quarter of this year were for vehicles under $20,000 bucks. But there are just fewer cars under that price point now, Matt, which means the competition is stiff.”
“So fuel economy matters, reliability matters, but your depreciation is the thing you should be most concerned about. I think AAA says it's like 40% of the total cost of the car that you own.”