Sticker Shock for New Cars Is Keeping Buyers Away
Newser • • business
Key Points:
- In 2019, US drivers purchased 17 million vehicles, but analysts predict sales will not exceed 16 million this season, indicating a slowdown in the auto industry.
- Industry experts do not expect vehicle sales to return to pre-COVID levels until late in the decade, if at all, signaling a fundamental economic challenge for consumers.
- Major automakers like GM, Ford, and Toyota are focusing on selling fewer, higher-priced trucks and SUVs, prioritizing profits over volume.
- There is limited availability of lower-cost vehicles, with about 25% priced between $25,000 and $35,000, while many models now cost over $55,000, and used-car prices have also risen.
- The current market trend reflects broader economic issues impacting consumers' ability to afford new cars, posing a significant threat to the auto industry's future growth.