The High Cost of Cars: Affordability Crisis and Oversupply Impact Market

The car market is becoming increasingly unaffordable, with just 8% of new vehicles costing under $30,000, making it the least affordable in modern history, according to experts. Consumer preferences have shifted towards more expensive SUVs and trucks, leading to higher demand for vehicles with luxury features. As a result, car prices have reached near-record highs, with the average transaction price for new cars at $47,892 in May. Meanwhile, the availability of lower-priced options has significantly decreased, leaving more car shoppers priced out of the new car market and resorting to purchasing older, higher-mileage used cars.