$5K Price Blocks

KEY POINTS:

Half of the battle in car shopping is the “entry,” aka “buy the right car at the right price.” But how does that breakdown? And how can we use the organic pricing structures in the industry to do this?

There’s a dynamic in the car industry where cars file nicely into their respective price points in the market, and this happens in $5,000 increments.

When you set a budget for your car purchase, is it safe to say that it was in a $5k increment? $15k, $20k, $25k? 

For most of us, our brains categorize money into digestible blocks. The used car market responds to this logic. (Unless you’re that outlier who picked a budget of $13,650.50… you’re a rare beast.)

There is tremendous opportunity here. 

Let’s dig deeper.

HONDA CIVIC

Here is, what I like to call, the “sandwich” for the Honda Civic, as of January 2026:

2026 Civic LX – Original MSRP of $25,890 (between the $25-30k block)

2023 Civic LX w/ 30k mi - $21,000 (between the $20-25k block)

2020 Civic LX w/ 60k mi - $17,000 (between the $15-20k block)

2017 Civic LX w/ 90k mi - $14,000 (between the $10-15k block)

2014 Civic LX w/ 120k mi - $10,000 (between the $5-10k block)

Do you see the logic of the $5k blocks? And do you that, just by observing this “sandwich,” you can sniff the opportunities available as a buyer, owner, or seller. 

THE BUYER’S OPPORTUNITY

If I’m shopping for a Civic with a $15k budget, I don’t want to limit my search to $15k. I want to look at the next price block to find any sneaky opportunities. What if an extra $2k nets me 30k miles of usage and, assumingly, a better quality car? Isn’t it worth it to look up to the next $5k block?

If I’m shopping for a 3yr old Civic, isn’t it also worth it to see what they are brand new where I have access to new car financing, warranty, fresh tires/brakes, etc? The 3yr old cars just have not depreciated enough.

THE OWNER’S OPPORTUNITY

Say I own a 2023 Civic with 30k mi and I want to time the sale of my car. Based on the numbers that I see currently, it would be wise for me to keep it for another 6yrs/60k mi and sell at $14k. This would net me 60k (reliable) miles at just an approximate $7k loss and I get to sell while the mileage is still considered “low” and before the next big service items.

THE SELLER’S OPPORTUNITY

Let’s say I’m selling a 2017 Civic with 90k mi. Does it make sense to price it at $15,500 (where it will compete with the 2020 Civic’s with 60k mi’s) or is it more strategic to capture the sub $15k market and slot right below that $5k price block to make it look good against the 2014 models? 

And by doing so, my 2017 car will look great against the cars in the next price block, like the 2014 models, and my listing will be more attractive because of it. 

STRATEGY AT EVERY LEVEL

No matter the market condition, whether it’s noted as “good” or “bad,” if you ground yourself in the principles that make up car economics, you will find opportunity.

Use this $5k price block understanding to find strategy, whether you are a buyer, owner, or seller.