New cars haven’t exactly vanished from showrooms, but about a million Americans who once would’ve bought one have quietly walked away, and they may not be back for a while, according to sales data and forecasts. After expecting a full rebound from the pandemic slump, automakers now see US new-vehicle sales stuck below pre-2020 levels as buyers choke on prices averaging around $50,000, rising gas costs, continuing inflation, and high interest rates, per the Wall Street Journal.
The paper reports that in 2019, US drivers scooped up 17 million vehicles, but analysts don’t expect more than 16 million vehicles to fly off dealership floors this selling season. Analysts no longer see the industry going back to its pace from before COVID until late in the decade, if then. “This is a real threat to the whole industry,” a Volvo executive says. “It’s a proof point of something more fundamental [that’s] wrong in the general economy—that people are not able to buy new cars.”
Car companies aren’t exactly rushing to lure those buyers back. GM, Ford, Toyota and others are making strong profits selling fewer, pricier trucks and SUVs, and they’ve shown little appetite for deep discounts or a big push into cheap models. Some lower-cost vehicles exist—roughly a quarter of offerings land between $25,000 and $35,000—but a larger share now exceeds $55,000, and used-car prices have climbed, too.
According to the Edmunds automotive portal, the average monthly payment for a new car comes in $750, while for a preowned car that figure is $565, per Axios. More Americans are now driving older cars (the average is 13 years), while companies are investing in high-margin pickups and SUVs and selectively backing cheaper options. If you do decide you’re in the market for a new model, the AP has five that might appeal to your wallet.
