Key facts
- Approximately one million potential new car buyers have exited the market since 2020.
- Annual new-vehicle sales in the U.S. are forecast to remain below the pre-pandemic norm of 17 million units.
- The average new vehicle now sells for nearly $50,000, with many models exceeding $55,000.
- Automakers are prioritizing higher-margin vehicles like trucks and SUVs over lower-priced models.
- Consumers priced out of the new car market are delaying purchases or turning to the used car market, where prices have also risen.
The traditional milestone of purchasing a new car is becoming increasingly out of reach for many Americans due to persistent high prices, shifting the perception of car ownership from a common achievement to a luxury good. Automakers' strategic shift towards higher-profit vehicles exacerbates this trend, leaving fewer affordable options for middle-income households and pushing the average age of vehicles on U.S. roads to a record high.