The Increasing Inaccessibility of Buying a New Car
More Americans are being priced out of the new car market due to rising interest rates and a lack of affordable options. Spending on new cars by the lowest 20% of earners dropped to its lowest level in 11 years, while spending on new cars by the top 20% reached its highest level on record. The average price of a new car in the United States hit $48,008 in March, up 30% from March 2020. Automakers are selling fewer new vehicles in the United States than they did before the pandemic, but their 2022 revenue was still $15 billion higher than in 2019, because the mix they are selling is more expensive.