Why Only Rich People Are Buying Cars Now

New-car prices in the United States have loudly crossed into territory that most people thought was unthinkable. With average transaction prices topping $50,000 in December, the pool of Americans who can realistically afford to take home a new vehicle is shrinking fast—with the industry becoming increasingly dependent on buyers at the top of the income ladder.

Fresh data from Cox Automotive shows that consumers earning under $100,000 a year now make up just 37 percent of new-car buyers. Back, before the pandemic in 2020, that figure was still 50 percent.

“We have a different vehicle buyer today than we had just a few years ago,” Cox Automotive senior economist Charlie Chesbrough was quoted by CNBC. “The key takeaway here is that we’re seeing the average buyer here is much more affluent.”

That 13 percent drop represents millions of lost sales from lower or average-income households. On the other end of the spectrum, the share of buyers earning more than $200,000 has gone ballistic, shooting up from 18 percent in 2020 to 29 percent today. Automakers are increasingly reliant on high-margin sales to extremely wealthy households rather than playing the volume game by selling lots of cars to lots of people.

While U.S. vehicle sales didn't break records this year, the numbers are still pretty good. However, automotive executives may be forced to take action if buyers keep dropping out of the market due to pricing. Some analysts believe this could happen within the next two or three years if we continue on this trajectory.

Monthly payments help explain part of the problem. The average financed new-car payment is now close to $750, and roughly one in five buyers is paying $1,000 or more each month. That's on top of the substantial inflationary increases in the Consumer Price Index that have stacked up in the years since the pandemic.

For many Americans priced out of new vehicles, the used market was at least a safe haven. That's changing too. Cox reports that the average used vehicle was listed for just over $26,000 in December 2025, up about three percent from the year prior. Average used-car payments have climbed past $500 a month, and the supply of genuinely affordable used cars continues to dry up. I bought a 2009 Ford Escape to use as a winter beater in October last year for $1100— then again, I had to replace the seals on the oil pan and timing cover to get it on the road. Your average buyer just isn't going to do that.

Used cars listed below $20,000 accounted for less than 12 percent of the market last year, down dramatically from nearly half in 2019. Most used vehicles now sit in the $20,000 to $40,000 range, a price that used to cover most new cars.

Our Take:

The American car market is increasingly catering to high earners, while middle-income shoppers are being pushed toward longer loans, higher payments, and fewer affordable choices on either side of the showroom. This is an untenable situation for all involved. Do yourself a favor: buy a used Toyota from some retired lady.

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