U.S. auto industry seeing ‘affordability shift’ to lower-priced new cars

Oct 22, 2024 · Across the industry, auto analysts say, an “affordability shift” is taking root. The trend is being led by people who feel they can no longer afford a new vehicle that would cost …

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Affordability Crisis: The Vanishing Sub-$25K Models And The …

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Mar 4, 2023 · Affordability Crisis: The Vanishing Sub-$25K Models And The Surge Of $60K-Plus New Cars ... As you might expect, sales have fallen to just four percent of the market, with …

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Auto Industry Sees An ‘affordability Shift’ In Car Sales

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Oct 22, 2024 · By 2022, the market share of compact and subcompact vehicles had dropped below 30%. This year, that share has rebounded to nearly 34% and rising. Sales of compact …

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More Consumers Are Buying Cars They Can't Afford - Autoblog

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Oct 8, 2024 · The share of new-vehicle shoppers taking on $1,000+ monthly payments remained at near-record levels in the third quarter of this year, with 17.4% of consumers taking out new …

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Affordability Concerns Among American Car Shoppers Aren’t

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Sep 11, 2024 · The good news for the auto industry is that many consumers seem aware of these challenges as 65% of respondents said “[their current] car purchase seems more challenging …

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60% Of People Shopping For A New Car Wory About Affording It

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Mar 20, 2023 · That's a good sign that the market could become more buyer-friendly soon. Still, though, the total inventory of new cars is still less than half of what it was three years ago. …

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Car Affordability Crisis: 29% Of Americans Are Taking On Debt To …

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May 23, 2023 · Here’s a look at why car owners are going into debt, plus advice for financing car repairs if you can’t pay out-of-pocket. Nearly 1/3 of Americans Took on Debt To Pay for a …

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Supply Chain Issues And Market Shifts Challenge Automakers

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2 days ago · The global light vehicle market is expected to grow modestly in 2025, reaching 91.4 million units, a 3.1% increase over 2024. However, experts predict that "the recovery will be …

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FAQs about U.S. auto industry seeing ‘affordability shift’ to lower-priced new cars Coupon?

Why are investors punishing auto companies this week?

Investors are punishing auto company stocks this week, Thursday, July 25, after second-quarter earnings exposed industrywide issues of slowing sales and high prices in the face of huge capital investments in electric and gas vehicles. (AP Photo/David Zalubowski, File) ...

Why are automakers turning to incentives?

At the same time that new car sales are beginning to stagnate, automakers are turning to incentives to bring buyers in. The most recent numbers from Cox Automotive show that manufacturer incentive spend as a percentage of selling price is at the highest level since 2021. ...

Will the auto industry storm cause some automakers to fail?

Tavares predicted that the industry storm could last several years, and it could cause some automakers to fail. Automakers, especially GM, Ford and Stellantis, abandoned lower-cost small and even midsize cars starting five or six years ago, leaving them little to sell to those who want affordable vehicles, Abuelsamid said. ...

When should you pause buying a car?

“Savvy buyers would be wise to pause their pursuit of a vehicle purchase until we see some more declines in both the used and new vehicle pricing, as well as the interest rate declines that everybody is expecting, to address the affordability crisis that we’re in,” Lyman said. ...

How will falling interest rates affect new car prices?

Falling interest rates will bring 0% financing to more models, and pull shoppers away from the used car market. After four years of tumult, the car market is finally starting to resemble normalcy – at least in terms of seasonal price fluctuations and dealership lot inventory. Yet, as any car shopper knows, new car prices remain high. ...

How has inflation impacted car ownership?

“Inflation has stretched everyone’s budgets thin, and nowhere more so than in the area of car ownership, whether it’s vehicle prices or insurance or repairs,” said Henry Hoenig, data journalist at Jerry. “The cushion that many Americans typically built into their budgets for unexpected expenses, like car repairs, is dwindling or entirely gone. ...