High Prices Push 1 Million Shoppers Out of New Car Market as Average Tops $50,000
Updated
Updated · CarBuzz · Jun 3
High Prices Push 1 Million Shoppers Out of New Car Market as Average Tops $50,000
3 articles · Updated · CarBuzz · Jun 3
Summary
About 1 million would-be buyers have exited the U.S. new-car market since 2020, instead keeping older vehicles longer or shifting to used cars.
More than $50,000 was the average new-vehicle transaction price in 2025, as inflation, high gas costs and elevated interest rates squeezed affordability.
Cheaper models have also disappeared from lineups — including the Nissan Versa, Honda Fit and Kia Soul — pushing shoppers toward higher-margin SUVs and pricier trims.
Nearly one-third of auto loans now run 72 months or longer, while subprime financing rose to 15.75% from 14.4% a year earlier, underscoring mounting payment stress.
Ford and General Motors can earn more selling fewer expensive vehicles, limiting incentives to revive sub-$30,000 models even as sales weaken.