If you’ve shopped around for new cars lately and experienced sticker shock, you’re not alone. According to Cox Automotive, the average price of a new vehicle today is $47,218, more than $7,000 higher than five years ago in 2019. The skyrocketing costs are due to a few factors, such as tight inventory and manufacturing disruptions during COVID-19, inflation, and consumer’s changing taste. Many now prefer pricier SUVs, prompting some automakers to discount budget-friendly cars in recent years.
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In addition, with insurance rates soaring, there are fewer affordable options for shoppers, and a new car is likely off the table for many, especially for baby boomers who are retired and living on a fixed income. Having a new car payment on top of other expenses while on limited funds can add stress, but there’s a silver lining.
Buying a reliable used car has the advantage of being cheaper — insurance is typically less expensive, and a used car faces less future depreciation as compared to a new vehicle. Here are five great used car deals under $20,000, offering a more affordable and manageable option for boomers and cost-conscious customers.
Honda Fit (2018-2020)
Median price: About $17,500-$19,000
EPA combined fuel economy: 31-36 mpg.
Cars.com listed the Honda Fit as one of the top used car picks. The long-lasting subcompact car has an impressive amount of cargo space and is not just fun to drive, but also practical and easy to park. Plus, it gets good gas mileage. And with proper maintenance, the Honda Fit can average a lifespan of 13 to 20 years (and reach up to 200,000 to 300,000 miles without requiring major repairs).
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Toyota Sienna (2015-2016)
Median price: About $18,500-$20,000
EPA combined fuel economy: 19-21 mpg.
The Toyota Sienna has a low price point that’s rare for minivans, per Cars.com. It was the only inexpensive minivan of 2015 and 2016 to offer AWD, making it a special find. With regular maintenance, it can last well over 200,000 miles.
Mazda 6 (2017-2018)
Median price: $12,799-$15,742
EPA combined fuel economy: 29-30 combined mpg.
The Mazda 6 made Consumer Reports’ list of best-used cars to consider because of its “engaging” drive, which handles well and is ideal for daily commuting. The midsize sedan has a stylish exterior and luxury feel with top safety marks. It also offers a spacious interior that can carry an impressive load. If well cared for, the Mazda6 can last 200,000 miles.
Acura TLX (2015-2016)
Median price: $12, 282-$13,309
EPA combined fuel economy: 25-28 combined mpg.
According to Consumer Reports, the Acura TLX is the best luxury used car under $20,000 — dubbed so for its exceptional price point and features such as cross-traffic alert, lane keep assist, lane departure warning and forward collision warning. With routine maintenance, the TLX can last 17-20 years and go up to 300,000 miles.
Honda HR-V (2017-2018)
Median price: $13,766-$14,391
EPA combined fuel economy: 29-31 combined mpg.
Another used car to consider is the Honda HR-V, which is an affordable SUV that will carry you through retirement. With its budget-friendly price tag, reputation for reliability, and excellent gas mileage, the compact SUV is an attractive option that can last up to $200,000 miles with routine maintenance.
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This article originally appeared on GOBankingRates.com: 5 Used Cars Boomers Can Buy For Under $20,000
