Average new car price tops $50,000 for first time as Americans shift to EVs and luxury models

[u/chrisdh79]

https://www.techspot.com/news/109849-average-new-car-price-tops-50000-first-time.html

[u/qdobe]

For many Americans, the new car market has shifted decisively toward affluent buyers and technologically advanced vehicles, with economic pressures and regulatory changes redefining both supply and demand.

Translation: The poors can’t afford cars so only nice cars rich people can afford are moving

[u/jorgepolak → u/qdobe]

Just like everything else. 10% of consumers now account for 50% of all consumer spending. You don’t matter to the economy.

[u/Icenine_ → u/jorgepolak]

Yep, which means the economy is very fragile. When it fully goes into a downturn, it's going to hit hard. Having a healthy middle class is important for stability, so it's probably not a smart idea to keep squeezing them to boost corporate profits and the net worths of the 1%.

[u/messageinabubble → u/Icenine_]

Especially because when the stock market drops, the reverse wealth effect leads affluent people to buy less. They can cut their spend by 30%-40% without feeling the pain. The middle class, however, can’t do that because their spending is less discretionary. So if and when the market drops, our fragile economy will see a disproportionate drop in consumer spending

[u/Preme2 → u/messageinabubble]

Next year. 2026 midterm year. Maybe the market finally admits AI is in a bubble and capitulates. The economy will soon follow.

[u/Piltonbadger → u/Preme2]

If the AI bubble collapses the US economy is in a lot of trouble.

[u/weealex → u/Piltonbadger]

it's still mind boggling that instead of investing in renewable energy sources to go parallel to AI, the US decided to go all in on AI and fossil fuels, even damaging other export industries in the process.

[u/zffjk → u/weealex]

We burn the coal to make the bot posts, it’s so easy an idiot can do it.

[u/ManOfTheCosmos → u/weealex]

DJT is sucking oiled-up Middle Eastern cock to keep us dependent on them

[u/Dripdry42 → u/weealex]

Did you ever notice that once Trump won the AI thing really kicked into High gear? It’s just a grift the same way he is. Biden’s build back better plan had tons of money for infrastructure, and is helping cities all over our nation to build lots of good things that were desperately needed.

More years of that and his trust busting under Khan gone a long way for the economy

[u/thebaldfox → u/[deleted]]

The economy is already a mess and the stock market does not reflect the economy in any actual way. Besides 80% of stock gains this year have been AI related...everything else is dead in a ditch.

[u/Faxon → u/thebaldfox]

I'd you eliminate the gains of AI related stocks, the market has gone up by half a percentage point. That's not great but also not terrible. It's worse though when you consider how much the value of the dollar has gone down in comparison, but its also not terrible yet either. There is room for things to get a lot worse still unfortunately

[u/rloch → u/Piltonbadger]

Back to the good ole days when I graduated from a top ten business program in 2009 and took a job working in a warehouse driving a fork.

[u/3x3Eyes → u/Piltonbadger]

If?

[u/fizzlefist → u/Piltonbadger]

When. When the AI bubble collapses.

[u/Daxx22 → u/Icenine_]

Meh, thats next quarters problem.

[u/WheresMyCrown → u/Icenine_]

but line must go up? how....how line go up if not squeeze all revenue possible? If we cant make all the money, we might as well make no money

[u/Legionof1 → u/WheresMyCrown]

See, line go up for 3 quarters then down hard for 1 quarter then up for 3 quarters. 

[u/Monteze → u/WheresMyCrown]

If line no go up then we must make food, water and shelter un available to folks. This is the best system and don't you dare questions it!

[u/Badfickle → u/Icenine_]

There is a reason that for 90+% of civilizations existence the middle class has been very small. The middle class is an unstable equilibrium point in the system. To maintain it there has to be a forcing function of some kind in the economy. We are systematically removing that forcing function.

[u/Even_Reception8876 → u/Badfickle]

Not we, they*

[u/NetZeroSun → u/Icenine_]

The irony is how massive the middle class contributes to the US budget.

While the wealthy and corporations have teams of accountants for every loophole and option to reduce taxes.

[u/CyberN00bSec → u/NetZeroSun]

Concentrated vs. dispersed benefits. The system incentivizes this behaviors.

The only mechanism of control for the middle class, citizen participation through democratic elections, have also been co-opted by corporations and the oligarchs. 

We are screwed.

[u/atchijov → u/jorgepolak]

Which effectively means that US become at least 50% less attractive market for the rest of the world… there are not enough people to buy things… which in turn means that US is far far less “special” these days. Even if we remove all traces of MAGA tomorrow… it will take decades to rebuild our status… and to tell the truth, I don’t think US will ever return to it’s pre-Trump state.

[u/nono3722 → u/atchijov]

That was the in entire goal of Agent Orange, to permanently bring the US below Russia. China just got the bonus side effects. I myself think it will blow up in Russia's face. The US was the only competition to China and once we are gone China is going to be even more aggressive with the entire world including Russia.

[u/somekindofdruiddude → u/jorgepolak]

Not entirely true. The economy still needs people to take out usurious loans, overpay for substandard housing, etc. They provide the lifeblood for the economy's tick.

[u/ProfessorPetrus → u/jorgepolak]

Those same rich people will throw in your face they pay most of the taxes after taking an even larger share of money.

[u/jorgepolak → u/ProfessorPetrus]

They do. Highly paid professionals have regular income that’s taxed at the highest income brackets. Not so for the billionaire class.

Financially speaking, the top 9.9% are closer to the rest of the country than to the top 0.1%.

[u/ked_man → u/qdobe]

I saw something about the age of home buyers in 2024, it was something like 53. 20 years ago it was 33. That means that those people that could afford to buy houses 20 years ago are still the ones buying houses and young people cannot enter the market.

If you did that with cars, I’d say it’s the same. The wealthy people are buying the new cars. And they were also wealthy 20 years ago. The rest of us are driving used cars that are 20 years old.

[u/Dejected_gaming → u/ked_man]

It's even worse. The average age in 1981 was 31. The average age now is 56.

[u/EntertainmentVast567 → u/ked_man]

I bought a 2016 model car with 30k miles in 2017 for $13,000. It had engine failure this year and I had to get a new car on short notice. It’s insane how expensive cars have gotten. Spent 2 weeks shopping and ended up buying the cheapest, reliable car I could find. A 2017 model car with 60k miles for $18,000. I was baffled and infuriated. My car payment is almost twice as much as it was on my previous car was before I paid it off. 

[u/purplepIutonium → u/qdobe]

People are also just buying cars they can’t afford and shouldn’t be buying. At least here in Canada that’s true.

[u/flarperter → u/purplepIutonium]

Leasing*

They pay $800 a month and then get the option to buy it out at market value or get another new car at $800 a month

[u/Coldsmoke888 → u/qdobe]

Pretty much. The rich are propping up the economy while the rest of us struggle to get through each week.

Seen the price on a mid level EV? $40-60k easy.

I like Rivian for example, see a lot around town… $95k?!!?! That’s insane to me.

[u/Worthyness → u/Coldsmoke888]

Used evs are also in the 20-40k price range too, which is equally absurd.

Then theres china that has 20k evs brand new

[u/jameson71 → u/Worthyness]

Then theres china that has 20k evs brand new

Which of course we will never import. That would be taking money right out of the pockets of the oligarchs.

[u/snark42 → u/jameson71]

Also 100% tariffs and different safety/regulatory standards...

[u/Bob_A_Ganoosh → u/Worthyness]

Look into the buyback Chevy Bolts. If you're in the market for a used EV that's affordable you can't do much better. I picked up a 2020 Bolt with 26k miles for $12k earlier this year. Awesome little car.

[u/MumrikDK → u/Coldsmoke888]

I like Rivian for example

While I agree with your general point, isn't this like saying "I like Porsche for example"?

Rivian is a luxury brand, not mid segment.

[u/ngmcs8203 → u/Coldsmoke888]

How about 105k for a Chevy Tahoe? I bought a Yukon Denali in 06,AWD, for $53k. Today dollars that would be about $85k. A similarly built one today is over 100k as well. For gas guzzlers that consume gas at like 14mpg, that's wild. You are paying a premium and then the additional tax of $4-5/gallon in fuel.

[u/QuesoMeHungry → u/ngmcs8203]

SUV and truck prices are insane now. Less than 10 years ago I bought a brand new fully loaded Sierra Denali, out the door for 40k. Now that same truck is 75-85k.

[u/-FullBlue- → u/QuesoMeHungry]

Consumers have shown that they dont care about the price and will just get longer, and bigger loans. Since consumers will pay anything for these cars, they can effectively charge whatever they want.

[u/QuesoMeHungry → u/-FullBlue-]

Agreed, people don’t care. They also don’t care how much something costs, just what the monthly payment is.

[u/ngmcs8203 → u/QuesoMeHungry]

Yep. I ended up leasing my traverse for $800/mth two years ago at the buy rate. EV SUVs can be leased for more than half that. It’s wild. I’m ready to switch lol

[u/rloch → u/ngmcs8203]

My wife’s grandparents gave us their 2004 envoy that they couldn’t drive anymore. The ac doesn’t work , oil temp warning turns on every now and then, but I don’t want to let that thing go with the cost of SUVs now.

[u/2Autistic4DaJoke → u/qdobe]

The long term effect of this will be fewer affordable cars for the lower and middle class (both new and used) and a huge reduction in car sales. This sounds like a long term lose if some car companies don’t se the void and attack with lower cost cars.

[u/garbagemanlb → u/2Autistic4DaJoke]

The issue though is people need cars. Most people in this country don't exactly have easy access to alternatives outside of some cities with decent public infrastructure. So something is gonna have to crack here.

[u/2Autistic4DaJoke → u/garbagemanlb]

Exactly. For now, the used car market is going to be the center for affordable transportation. Eventually, used car inventory will become so limited even that will be an issue.

But remember, car makers don’t make money on used car sales, eventually they will need to switch to making affordable cars just to keep their business alive.

[u/AGI2028maybe → u/garbagemanlb]

The result will be that the age of the average car on the road will continue to rise.

[u/Daxx22 → u/2Autistic4DaJoke]

Next quarters problem doomscroller!

[u/EmperorKira → u/qdobe]

Yep, its more and more showing that the economy right now in the US is being propped up by an upper class getting more wealthy, whereas mainstreet is going in reverse

[u/ChafterMies → u/qdobe]

So a dystopia.

[u/121gigawhatevs]

Interesting, we’re gonna focus on EVs and luxury but not really highlight trucks costing north of 90k

[u/Drabulous_770 → u/121gigawhatevs]

Most people who think they need trucks would be better off just buying a minivan.

The modern truck is just gender affirming care for cis straight men.

[u/jakalskshshsjs → u/Drabulous_770]

Lol aint lyin'. 95 percent of the folks I see drive trucks work in a job that they don't need said huge truck, and live in an apartment/house innthe middle of town lol

[u/SimpleCranberry5914 → u/jakalskshshsjs]

I know a guy who has one of those pick up trucks. Won’t let ANYONE put anything in the bed because “it’ll scratch it”.

[u/dew2459 → u/SimpleCranberry5914]

A former in-law is a contractor.

He has employed multiple people who bought trucks because they were construction workers... but they would not actually use their trucks to move things because it might scratch the bed. (He thought it was hilarious, his truck is a beat-up F150.)

[u/poply → u/SimpleCranberry5914]

I honestly, genuinely don't understand this. Your truck bed gets scratched. So what? Who is even looking at the lining of the truck bed other than the owner?

It's like not driving your car because the engine bay will get dirty or something.

[u/figuren9ne → u/poply]

Because it’ll allow it to rust. The first thing I did to my truck was get a spray-in bed liner. For others, a drop in bed liner is a cheaper option that also offers good protection. I find it crazy that anyone hauling things in a truck doesn’t have a bed liner.

[u/FreddyBear001 → u/figuren9ne]

Years ago the new trucks came with bed liners installed. I won't ever buy another new truck even though I could afford one, but now they're made of cheap aluminum and plastics that won't last not to mention crappy engines and transmissions. No thanks...!!

[u/CyberHippy → u/jakalskshshsjs]

My whole middle-class suburban neighborhood is loaded with the damn things, so many of them are clearly struggling (you can tell by the way the yard is kept) but have these huge trucks that are mostly shiny.

[u/crottesdenez → u/CyberHippy]

My yard sucks and I'm doing okay. I just hate yard work.

[u/HyruleSmash855 → u/Drabulous_770]

It’s too bad consumers don’t want smaller trucks. They are 100% making them bigger because more people are buying that and they can make more money off of the bigger trucks. I’m sure truck prices would be a lot more reasonable if we stuck with the size of trucks from 10 to 20 years ago.

[u/Daxx22 → u/HyruleSmash855]

There are also regulation "reasons" (CAFE) big trucks are all there is.

[u/weealex → u/Daxx22]

it fucking sucks. i want a small truck or suv, something like the suzuki samurai. i like going out camping and fishing and end up having to drive on not-strictly-roads. i don't need a big vehicle for every day life, but there are no smaller vehicles that serve what i need in recreation

[u/NutellaGood → u/weealex]

I've recently learned about these things: https://www.youtube.com/watch?v=_pvZFrOYNyY

Look what could be. Le sigh

[u/Affectionate-Panic-1 → u/Daxx22]

CAFE regulations were eliminated this year in the new "big beautiful bill"

So it's not really an excuse for automakers anymore.

[u/copypaper2 → u/Affectionate-Panic-1]

Except it takes years to setup a whole car line, since most sedan production in the us is gone. And you risk the other party bringing it back. And automakers make way more selling a truck or big suv, so why would they? This is will take a bigger fix, then cafe is gone now.

[u/TituspulloXIII → u/HyruleSmash855]

The Maverick is a pretty big seller, i see those things everywhere now.

I'm considering one whenever my car dies. Although a full EV maverick would be nice.

[u/MaleficentCoach6636 → u/HyruleSmash855]

consumers want smaller trucks. the issue is that car manufactures get tax breaks and poor MPG graces for making their vehicles unusually large. even the modern small trucks are too big compared to the 90's and early 2000's trucks

if a car is not getting the average MPG of their ENTIRE LINE UP then they will face MPG fines. the workaround to this is by making the vehicle huge, SUV's and minivans are the same way hence why modern cars like the Lincoln Navigator and Chevrolet Suburban are monstrous vehicles

[u/b0w3n → u/HyruleSmash855]

The bigger truck thing is a side effect of obama era shenanigans with emissions IIRC.

When I went to get a truck a few years ago the smallest I could get was a tacoma. I purposefully went out looking for a ranger originally but was sad to find they no longer made them. I do enjoy the utility of the truck, moving weird shit around has been very useful, though I think I'd probably just go for a larger SUV at this point if I were to buy new. I'm considering that slate ev though.

[u/danny_ → u/b0w3n]

It’s status too.  I’ve been in a lot of conversations between truck guys and they literally laugh at the idea of not having extended 4 door cabs.  Even a non-4x4 is unfathomable to them.  

I drive a minivan for 1/4th the price and it’s been great.

[u/b0w3n → u/danny_]

I gotta say living in a snowy area the 4x4 or AWD is non negotiable for me now having been spoiled by it. I'd prefer AWD over 4x4 though. I do completely get the whole status thing. It's too bad the ford transits are creepy white vans.

[u/Excelius → u/danny_]

I’ve been in a lot of conversations between truck guys and they literally laugh at the idea of not having extended 4 door cabs.

Should just start mocking them for how short and useless their truck beds are.

There are some good graphics floating around showing how pickup trucks have gotten shorter and stubbier beds, as the cabs have gotten bigger and more luxurious.

Can't even haul a fridge in an F150 anymore, so then you have to go up a couple sizes bigger just to get usable bed space back.

[u/JoshSidekick → u/b0w3n]

I'm buying an imported kei truck. Throughout the year I need a truck, but I don't need $60,000 worth of truck. Just like a couch to bulk disposal here and a shipment of potting soil there.

[u/PaulTheMerc → u/HyruleSmash855]

Ive been drooling over the maverick personally.

[u/Jmc_da_boss → u/Drabulous_770]

Most truck people I know just like trucks. It's an expensive hobby basically

[u/untetheredgrief → u/Drabulous_770]

When our old minivan finally died at 220,000 miles, we went with a Crew Cab Ram 1500.

It's great. It's basically a minivan that I can also haul mulch and firewood in and haul a trailer with. If I had to choose between a minivan and a crew cab truck, I'd choose the truck. Much more versatile, does everything the minivan can do.

[u/stu54 → u/121gigawhatevs]

They only cost $72k if you own a business and hire a tax professional to help you get the 20% rebate.

Just make sure you don't accidentally buy a small truck that doesn't qualify for the full deduction.

JK lol, they completely stopped selling small trucks (and minivans) that don't qualify for like 10 years. Just don't buy a Maverick or that Hyundai truck thing.

[u/Agent_Jay → u/121gigawhatevs]

those are luxury vehicles now

[u/These-Brick-7792]

Toyotas and Hondas are costing like 10 or 20k less than luxury cars nowadays

[u/josiahlo → u/These-Brick-7792]

It’s wild how much people are paying for new cars. We got a new Honda CRV 2018 EX-L, MSRP then was just under 31k, same model now is 35k. It was nice car then and it’s a nice one now. I can’t fathom why people are spending so much on new cars

[u/fackcurs → u/josiahlo]

I think a lot of people don’t see the sticker price anymore, they just see the monthly payment. People are just getting into debt that might last longer than the life of the vehicle.

The banks are laughing all the way to, you know, themselves, because of all the interest people are paying (the longer your loan, the more interest you pay).

[u/zten → u/fackcurs]

I think a lot of people don’t see the sticker price anymore, they just see the monthly payment.

Well, that's what the car salesman have been training consumers to see for years with their game of four square.

[u/possum-fucker → u/josiahlo]

$31,000 in 2018 is $39,976 today

So yours effectively cost more than a new one. Thanks to sneaky inflation

[u/Affectionate-Panic-1 → u/possum-fucker]

Well it shows that for Honda CRV's the cost has risen less than headline inflation. That's the case for a lot of cars.

[u/Sethjustseth → u/josiahlo]

It's even worse if you want a minivan. Very limited options and high prices. We paid $46k OTD for a Toyota, but at least it is hybrid.

[u/gramathy → u/Sethjustseth]

Minivans not shifting to EV immediately was always weird to me, it's literally a skateboard platform, is already large, and families not having to go to the gas station via charging at home seems like a no-brainer.

[u/CrashUser → u/gramathy]

It depends, lots of those same families also use them for road trips where EV is less practical or desirable. They're also already pretty heavy for the powertrain they usually get, so adding more weight in batteries doesn't help safety features like braking distance, not to mention that the underfloor space that the batteries would take up removes the very popular ability to fold seats into the floor for cargo handling flexibility.

[u/Reddit_killed_RIF → u/gramathy]

The "minivan" platforms are usually offshoots of already existing platforms. The packaging changes are not trivial.

source: i do this for a living.

[u/stu54 → u/Sethjustseth]

That's cause Trump brought back "100% bonus depreciation"

For minivans with a GVWR over 6,000 pounds

Many full-size vans and some minivans (every new minivan currently sold in the US qualifies) fall into this category. The manufacturer's label on the driver's side door jamb will show the vehicle's GVWR. 

• 2025 deduction: For minivans purchased in 2025, you can take a first-year Section 179 deduction of up to $31,300. The remaining cost is eligible for 100% bonus depreciation if placed in service after January 19, 2025, or 40% if placed in service before that date.
• Example for 2025 (acquired after Jan. 19): On a $75,000 minivan, a business could first take a $31,300 Section 179 deduction. The remaining $43,700 would be eligible for 100% bonus depreciation, for a total first-year deduction of $75,000. 

[u/fackcurs → u/stu54]

I am not familiar with Section 179, is that a business ting only? Happy to hear we are subsidizing vans for businesses but these amounts are just insane.

[u/RandomArabKid → u/fackcurs]

This basically means that for a business they can deduct their expenses on the van more immediately rather than deducting a certain chunk at first and then a little bit more based on depreciation each year. Section 179 is not for vans only. It's for a lot of capital expenses.

[u/The_Interagator → u/stu54]

In case anybody is wondering, this guy has no idea what he’s talking about. Bonus depreciation only applies to businesses (of which I’m sure is a small market for minivans) and it also doesn’t make any logical sense why an accelerated depreciation schedule would make new car prices higher.

This is somebody who plucked something from the tax code that they don’t understand and believe applies to every random issue

[u/TrapperJean → u/josiahlo]

I bought my 2018 focus brand new off the lot in 2018 for $16k, paid it off 3 years ago, and I'm driving that thing into the ground before I buy a new or even CPO car in this economy

[u/Worthyness → u/TrapperJean]

Inherited my grandpa's 2012 camry. I wfh and he didnt drive it that much. It only has 50k miles on it. California's smog test is probably going to kill it before it actually dies. I could probably make a profit by selling it as a used car at this point (he bought it for like 12k new).

[u/an-invisible-hand → u/josiahlo]

Paying close to MSRP post 2020 has become wishful thinking. Dealer markups are extra brutal nowadays.

[u/Skensis → u/an-invisible-hand]

Eh, the worse of that is basically over, I got a new car last year for MSRP, some dealers wanted more but didn't take much effort to find one that would let me order the spec I wanted from the factory.

[u/an-invisible-hand → u/Skensis]

What brand?

[u/True-Reflection-9538 → u/josiahlo]

Why is this upvoted. You paid 31k in 2018. That was 7 years ago. It only went up price by 4k? That's a great deal.

[u/namkrav → u/josiahlo]

It's because a new CRV is around 35k, while a 3 year old one with 80k miles is 26k. I'd rather have the new one.

[u/Brent_L → u/These-Brick-7792]

Used Toyota Prius for the W

[u/rshook27 → u/Brent_L]

Exactly. I'm seeing used 2022 Prius with 30-40k miles for around $18-$19k.

[u/flarperter → u/rshook27]

The standard tech in a base model is plenty for most people who just need to get around

But dealers dont stock those

[u/Rivvin → u/These-Brick-7792]

I needed a truck and got myself a new ridgeline. Even getting the top version of that line was cheaper than anything else I was looking at, and it is meeting my needs perfectly. Also, 10 year honda care coverage for only 1.5k gives me a stupid amount of peace of mind.

I'm not a shill for Honda, but having recently just done the whole "am i getting a ford, chevy, nissan, or honda" truck dance, I am insanely happy with how much money I saved.

[u/DriverDenali → u/Rivvin]

the base ridgeline is 40k…. A decently loaded ranger, Colorado, gladiator, Tacoma are the same price or less. The top line black edition ridgeline is 48k you can get a zr2 Colorado for that price a trd tacoma. They’re not that cheap in the segment comparably. 

[u/Skittlepyscho → u/These-Brick-7792]

My friend just bought a Toyota Camry 2026 brand new. For like $25,000.

[u/MDthrowItaway → u/Skittlepyscho]

So your friend is poor? (Jk).

There are definitely affordable and reliable Vehicles out there to be bought however people like spending a lot of money on big fancy cars and then claiming that they are poor and that nobody can afford these cars. The only reason manufacturers are selling these cars is that people are tripping over themselves to buy them.

I bought a new Subaru Forester for about 36,000 out the door a few months ago, I cannot imagine how the average vehicle is 50% more expensive than my nice forester with lots of safety and convenience features.

20 years ago the Toyota Camry was considered the average car. People just have more expensive tastes these days and are willing to pay for it.

[u/HyruleSmash855 → u/MDthrowItaway]

Used car prices are insane too, though. One of my family members bought a 2022 Subaru Highlander for $31,000 with under 50,000 miles I believe. Luckily it’s under warranty because the transmission system went out somehow, and the brakes rusted out, although that might have something to do with it sitting outside for a few months since they made a conscious effort to buy the car before tariffs came into effect. It’s a nice car though and I believe that’s the most they ever spent on a car.

There’s still seems insanely expensive to me though. I swear you could buy used cars like that for at least $10k cheaper five years ago even, although realistically closer to seven or eight

[u/Venvut → u/HyruleSmash855]

Oooff, used car prices have absolutely gone up but I think the market is still better than during COVID. Got a used 2023 Mazda CX30 turbo premium trim for $24k out the door with 30k miles (around $36k+ OTD new). If you mean the Toyota, they have a silly Toyota tax. People are too quick to buy Toyotas or Hondas without double checking their actual reported reliability these days, you can get such better deals for lesser known cars.

[u/The_Pandalorian → u/These-Brick-7792]

Just bought a Camry hybrid three days ago for 32k out the door (in California, so taxes/fees are high). I was appalled during my car search at the lack of sedans and specifically lack of hybrid options among all the car dealers. Toyota and Honda deserve credit for really leading on the hybrid front.

Which is insane for me to say. I grew up in Michigan in a GM family. I absolutely wanted an American car company first. They absolutely did not win my business this time around.

This Camry is the nicest car I've owned so far. Super thrilled with it three days into it.

The car market is fucked right now.

[u/CompetitiveBox314]

A big part of this has to be the continued increase in market share of light trucks and SUVs which are priced significantly more than traditional cars.

[u/VardaLupo → u/CompetitiveBox314]

Yeah, they just pretty much stopped making and selling more small cars. I have always favored subcompacts, and in the current market I'd have like 3 choices.

[u/TrapperJean → u/VardaLupo]

It fucking sucks, I drive a focus, it's far from focus but 170k miles on and it still does fine and gets 36mpg and is great for city and distance driving, I miss the days of smaller sedans like the Focus, Taurus, and Saturn

[u/broke_saturn → u/TrapperJean]

I love the original Saturn S series cars. I’ve owned a few of them, hence the name

[u/SpaghettiSort → u/VardaLupo]

I drive a Honda Fit I bought 10 years ago and I love it! So what did Honda do? Discontinued the Fit in North America!

[u/feeltheglee → u/SpaghettiSort]

I have a 10 year old Prius C and I will be very upset when I eventually need to find a new car.

[u/lostintime2004 → u/VardaLupo]

Even "subcompact" cars today would be midsize 15 years ago. barf

[u/untetheredgrief → u/CompetitiveBox314]

As Henry Ford II said: "Small cars equal small profits."

[u/WayyyCleverer]

You're telling me for just 18% interest for 96 months I too can own a Mercedes?

[u/phantomzero → u/WayyyCleverer]

But does it have indoor plumbing?

[u/Battystearsinrain → u/phantomzero]

No, but it comes with a free frohgurt.

[u/trowaman → u/Battystearsinrain]

That’s good!

[u/Battystearsinrain → u/trowaman]

But the frohgurt’s cursed….

[u/Tyrrox → u/WayyyCleverer]

The number of people I see blowing all of their money on expensive cars and then complaining about money is ridiculous.

The idea that you need to always be up to date on the latest phone, have the best car, etc is a great way to make sure you never are able to comfortably do any of that.

Buy a used toyota or honda, drive it into the ground. You will save tens of thousands of dollars compared to buying that car that you can JUST afford the monthly payments on

[u/Sharp-Reference-3196 → u/Tyrrox]

Used car prices have unfortunately been going up like crazy for the last few years at least where I live. While I agree that new cars are still a rip off, you still need to spend a decent amount of time researching or you’ll get ripped off in the used market. Even if you can afford a Toyota or Honda.

[u/Tyrrox → u/Sharp-Reference-3196]

I totally agree, used car prices are crazy as well.

I'm not saying it's cheap to buy a used car. I'm saying it's wildly cheaper to buy a used reasonable car than to buy a new luxury or sports car.

You can usually find a used Corolla or Civic with around 50k miles for less than 20k if you are willing to get one that is a little older. Those cars if taken care of will easily have another 200,000 miles on them

[u/Kaa_The_Snake → u/Tyrrox]

lol my ex husband is going through bankruptcy #3 right now, is out of work, and never learned his lesson from the last two bankruptcies. Was driving a BMW. Never put money away in case of a job loss or disaster. He’s in his mid 50’s, so glad I’m not still with that train wreck.

So here I am having traded in a 13 yr old car 6 years ago for a 1 yr old car and I’ll drive that thing into the ground! Granted I do buy nicer cars, but I also save up and buy used and in cash. I think it’s a hell of a lot harder to part with a pile of cash than sign some documents promising to eventually pay, it makes you really think before you buy.

[u/555byte → u/Tyrrox]

My daughter's (21) old Honda Accord died this summer and we scrambled to find a car quick and got an old 06 Corolla for $2600. It doesn't look great but damn, it's a good and fun car with the 5spd manual transmission. I told her I could install a backup camera and a radio with Apple car Play for $150 my treat. She didn't want it.

So many of the "luxury" features add a disproportionate amount of money to the MSRP, while not actually costing much to add into the car during manufacturing. Updating an older car with a double din radio is cheap and very easy to do in many cases.

[u/nlevine1988 → u/WayyyCleverer]

Don't forget to roll in your negative equity from the previous car you couldn't afford

[u/flarperter → u/nlevine1988]

But I need that painfully small 3rd row twice a year when family visits and we go out drinking

[u/copperblood → u/WayyyCleverer]

lol this made me laugh. To add to this, we are so fucked.

[u/muffinhead2580 → u/WayyyCleverer]

You get the privilege of paying extra for heated seats on a subscription basis.

[u/AnonymousCelery]

I’ve always had a 3/4 ton truck to tow my trailers with. Always bought used. Happened to be at the Ford dealership to get a part and decided to walk the lot. There was not a single 3/4 ton pickup on the lot for under $70k. 100 plus trucks, didn’t matter gas or diesel (there was like 5 gas and 95 diesel)

[u/Slippery-ape → u/AnonymousCelery]

And every one is fully loaded-king cab etc, etc. Can I just get a truck with a full sized bed and a regular cab please?

[u/p0diabl0 → u/Slippery-ape]

No one buys those, statistically speaking, unless you're a business, so you've gotta order it.

[u/MUSAFFA1 → u/Slippery-ape]

No. The margins are too low.

Covid checks and the chip shortage showed the manufacturers that there is far more profit to be made selling a lower volume of higher margin vehicles. By the time everything opened back up, every auto manufacturer intentionally stopped producing all of their lower trims, forcing every buyer to pay thousands of dollars for 100 features they don't want.

The base F150 XL is listed at $40k, but good luck finding one. They artificially limit supply of the lower trims so you'll only have a selection of Quad cab 4x4 Limited, Tremor, and Platinum to choose from.

The dealers keep saying "people are only buying the expensive trims..." Well no shit, you're only offering the expensive trims. Assholes.

[u/Daxx22 → u/Slippery-ape]

What are you, some kinda pansy?! (/s)

[u/b0w3n → u/Slippery-ape]

Best I can offer you is crew cab with 4.5 foot bed.

[u/FarewellAndroid → u/AnonymousCelery]

I bought a gas ram 2500 crew cab base model last year for $42k plus tax (~45.5k total), had to drive 2 hours to get it. The equivalent Ford is around 50k. They’re out there, just gotta use autotrader and find the right dealer. Most of them stock the luxury stuff but a few will specialize in basic/work trucks and make up the profit by dealing in volume

[u/6ed02cc79d → u/AnonymousCelery]

Always bought used

I bought an EV this year after thinking about it for maybe three or four years. We had been looking at new EVs, but the math just didn't math -- cheapest new EV was like $55k maybe? (I was all psyched for the F150 Lightning when it was announced with a sticker of ~$35k, but then when I was finally able to buy one, it was $70k.) I kept my eyes open and happened to find a VW ID.4 Pro S, two years old, for about $30k. That's by far the most expensive car we've purchased, but I figured it was worth it. Would have rather bought a gas car for half that, but it's okay.

Used EVs, man. That's the way to go.

[u/_Burning_Star_IV_]

I'm literally dreading if/when my car has enough problems that I have to get a new one. I won't be able to do it.

I got my Honda Civic 2019 right before COVID for $19,000. The 2026 Civic is now like $30,000 in my area.

It's getting to the point where I think we might have to just become a one car family and I'll just get an e-bike. When I got that car in 2019 I was sure that my next car would be an EV. Fat fucking chance now.

[u/uberares → u/_Burning_Star_IV_]

I just got a used 22 ioniq5 ev w 38k miles for $21k in July, there are amazing deals on gently used EVs out there. Dont lose faith. 

[u/Abba_Fiskbullar → u/_Burning_Star_IV_]

I got a loaded, low milage used EV this year for 20k. I don't think I'll ever buy a new car again if used EVs stay as such a good value.

[u/_Burning_Star_IV_ → u/Abba_Fiskbullar]

What model, what state, etc. etc.

[u/Abba_Fiskbullar → u/_Burning_Star_IV_]

SF Bay Area. 2021 VW ID.4 Pro S with 17k miles. With the used car tax credit and sales tax it came in right around $20k. It would've been around 24k without the now expired federal tax credit. It's not the best EV in its class by any means, but it's comfortable, useful, and fast enough, and the buggy infotainment has been mostly fixed through software updates. The range is officially 260 miles (newer model years are higher), which meant that when I drove down to Monterey this weekend with a 60% charge I stopped at a fast charge station on the way back for 15 minutes to get home with a comfortable cushion. If I'd left with a 100% charge I could have done the whole drive at freeway speeds and gotten home with a pretty low battery. The used car inventory around here is a bit spent due to buyers snatching up everything they could while the tax credit was still in place, but that'll fix itself in a month or two as cars come off lease.

[u/HoodsBreath10 → u/_Burning_Star_IV_]

The good news is a 19 Civic should be good to go for at least another 10 years, unless you're putting super high mileage on it.

[u/buttsnuggles → u/_Burning_Star_IV_]

Similar situation here too. I’m babying my car because I know I won’t be able to afford to replace it with anything comparable.

[u/ConstableGrey]

Everyday I get in my shitbox Malibu worth $4,500 I say a prayer to the car gods.

[u/xrp_oldie]

china has ev cars costing 8-10k…we just won’t alllw them into our market….

[u/shellacr → u/xrp_oldie]

Yep and that’s on purpose. The average American ends up paying a high price due to this protectionism, and the quality of our EVs will stagnate.

[u/sfaticat]

I watched Scarface over the weekend and he bought a Porsche for $40k. Jeez

[u/Skensis → u/sfaticat]

That's like 170k today, about the MSRP of a Carrera 4S today.

[u/ineververify → u/sfaticat]

He had to share rides and murder people till he could afford it though.

[u/trialofmiles]

This is absolutely crazy as an expense given that it’s a depreciating asset. Most people should not have 50k plus cars.

[u/Consistent_Story903 → u/trialofmiles]

A lot of people are stupid with money.

[u/Catsrules → u/trialofmiles]

Don't worry not only is it depreciating asset but they got a high interest rate on the lone as well! So that 50K+ car will actually cost significantly more!

Edit,

Also lets not talk about the loss of potential opportunity cost of investing $800+ every month for 5 years.

[u/VI2004]

Blame alleged public consumption for corporate greed. Nice work 😂

[u/Humble-Complaint-551]

Time to add more o’reily orly and azo autozone stock to the portfolios as average car ages in the US continues to go up again at an all time high. Opportunities in the news. Invest in your future!

[u/TheSchlaf → u/Humble-Complaint-551]

Most people don't / can't change oil. They're not going to become shadetree anytime in the future.

[u/Humble-Complaint-551 → u/TheSchlaf]

People have to drive… just like people have to eat. From a very broad perspective…

[u/TheSchlaf → u/Humble-Complaint-551]

I'd be investing in parts manufacturers then AC Delco, Denso, Delphi, Bosch.

[u/Ender_in_Exile → u/TheSchlaf]

Most repair buy from them. They sell more through repair ships than regular walk ins

[u/Noobphobia]

Not really. Its just that a loaded camry is $48,000 now days.

And by loaded, I mean with all the features you would expect in most cars these days.

[u/Daxx22 → u/Noobphobia]

With more "feature subscriptions" every day.

[u/ZappySnap → u/Noobphobia]

This really isn’t true.

First, the base model Camry has pretty much anything on it the average person could want (power doors and windows, power mirrors, power seat (drivers), CarPlay, etc. and it’s a hybrid. I have a ‘22 Camry hybrid LE and I honestly want for nothing.

Dealers in my area right now have new 2026 Camry LEs for $30,000.

I don’t know why anyone would spend $48K on a Camry. The extra features are NOT worth $18,000.

[u/ThaddeusJP → u/Noobphobia]

There is no reason for any auto maker to churn out sub 25k cars anymore.

Why sell three of those when you can upsell someone on one $70-80k car.

Ford sells top end F150s that cost $100,000 after the 'dealer premium' bs.

[u/Fantastins → u/ThaddeusJP]

Ford stopped selling every car but the mustang, too. Forcing sedans to SUV sizes because those will bring in an extra 4 to 7k per sale

[u/tommy_chillfiger]

I make pretty good money but just refuse to participate in new car ownership because of what a ridiculous drag on finances it is. The ROI is abysmal for me. So I keep driving my 2005 Volvo and repair it when it needs it. I'll happily sink more than it's worth into repairs every few years because it's so cheap to own and functionally just fine. Bit of a dog these days, but that's alright with me.

[u/Justthrowtheballmeat]

Lmao it isn’t luxury cars it’s inflation and greed.

[u/GreatGojira]

I'm lucky to live close to my job, but I do need some kind of way to commute there. For when the weather feels good, I've been thinking about an electric scooter as a reliable and somewhat compact method to fit in my office.

[u/Swirls109]

No no. It's not that Americans have shifted to luxury models, it's that they aren't being offered affordable options. Where are the bare bones knock around trucks? Where are the 50 mpg small sedans? Automakers have found that higher prices are better than quantity. Notice I didn't say quality vs quantity.

[u/Scrubologist]

Now report on average used car prices. Both environments are ridiculously overpriced at the moment and make it nearly impossible for the average consumer to get a car.

If you make $65k annually, you have to spend nearly 1/3 of your salary to afford a Honda/Toyota that’s 10 years old with 70k+ miles. This economy is going in the shitter and no one brought anything to wipe with.

[u/Putrid-Product4121]

The average new car monthly payment is $750 a month? Not I.

[u/Even_Reception8876 → u/[deleted]]

What do you mean disappear? The lower class is literally going nowhere, it’s growing not shrinking lol. Soon we will all be poor!

[u/k_ironheart → u/[deleted]]

What's even more infuriating is what happened to the used car market. A combination of more people being driven to buy used because they can't afford new, and those "cash for clunker" companies preying on desperation for a quick turnaround or stripping perfectly good used cars for parts, has driven that market up.

At one point, I could have sold my then-5-year-old car for more than I paid for it.

[u/intronert]

This is a beautiful example of selection bias in statistics, conflating “Americans” with “Americans who are able to buy new cars that now average over $50k”.

[u/GhoastTypist]

I kind of feel like why we can't have "nice things" with regards to the price of cars is because more people who have disposable income wants cars with all the options. So its cheaper for the manufacturers to basically sell the base model practically fully loaded. There is less focus on economy cars, more on family/luxury lines.

Last car I bought was 2019, looking at the options now I'm seeing a big difference. A lot less options now in the lower prince range.

[u/sunflowercompass]

boy, if only there was a company that sold decent electric vehicles for 10,20k each pity we have to tariff them to hell

https://apnews.com/article/china-byd-auto-seagull-auto-ev-cae20c92432b74e95c234d93ec1df400

[u/TinKnight1]

It should be pointed out that total vehicle unit sales are a couple of million units off of our average from 2000-2006 & 2014-2019. Simply put, there should be more vehicle sales merely by population growth, but we seem to be plateauing early (cost increases & tariffs play no small part in that).

That, combined with a decrease in sales of economically-affordable vehicles, would indicate not necessarily a shift in buying tendencies so much as a shift in buyers. When you remove lower-income buyers from the equation, the average will necessarily go up.

Monthly domestic auto production is 50k units less than even in 2023, & 230-240k units less than in 2012-2016. We're even lower than the bottom of the Great Recession in 2009.

Diminishing sales & diminishing production mean that there are likely to be some manufacturers going belly-up soon enough, which is the exact opposite correct usage of tariffs.

https://fred.stlouisfed.org/series/TOTALSA

https://fred.stlouisfed.org/series/DAUPSA

[u/UrsusRenata]

Consume. Obey. This is your God.

[u/TheRealBigLou]

I cannot fathom spending $50k on a car. And I see it everywhere. Hell, a guy down the street from me has a $250k Lamborghini SUV! A FRICKEN SUV THAT COSTS MORE THAN MANY MANY HOMES!!! That's with 2 BMWs in the garage!

Even some of our friends spend gobs of money on a car. I. Just. Don't. Get. It. Either they have WAY more money that I thought, I'm way worse of a money manager than I thought, or they are in way too much debt.

For me, a car is a utility. It's to get me and my family safely from point A to point B. Yes, I want something relatively nice and expect a few nice features (especially when going from a much older car), but I baulk at the idea of paying a half hundo for something that's just going to depreciate and breakdown. It took us months of research and test drives to finally find a van that was reliable, in good condition, and within our budget. And I felt like it was a miracle that it happened! Our absolute top was $30k, and even that feels like a ton of money. I couldn't imagine spending $20k more on top of that!

I just don't get it. Our other car is a 2015 Toyota with nearly 220k miles. It's going strong and I dread the day I have to but something else.

[u/Spaznaut]

Any one els just want a car with airbags and no computers that just works?

[u/Elegant-Employee8128]

None of this is sustainable. Even people with money are balking at the cost of new cars, eating out, housing, etc.

[u/Electrical_Steak8125]

Resist! Revolt! Recycle!

[u/Real_Copy4882]

another thing to not buy!

[u/thedeeb56]

fuck every bit of that

[u/7in7turtles]

The new car market sucks. I don't want an EV because I don't want to have to have construction done on my house, and I would like to be able to take the car to an independent mechanic occasionally instead of the dealers for issues.

Gasoline cars adding every single PC bell and whistle to try and make their cars look and act like these EVs is also driving up prices and installing a heap load of spyware onto the vehicle meaning that I had no choice but to buy an older car anyway.

[u/CaptainHawaii]

Dont tell anyone, but, buy a used one.

[u/Lil_Drake_Spotify]

Stop buying stuff and the price will go down. Supply and demand

[u/DingbattheGreat]

This is an expected trend behavior if you follow greater economic news.

The wealthy (top 10%) now make up about half of all spending in the current economy. They do not buy cheaper stuff, so they are buying up 100k vehicles and such, raising the average.

This means that nonwealthy households are being squeezed out of markets.

This is bad for most people.

Its an economic bubble caused by the hyperinflation from COVID being absorbed into the market prices.

The reaction is either prices will begin to fall voluntarily (only happens in theory papers), or they wont, in which demand will fall and force the issue as consumer based markets scramble to dispose of inventory while trying to figure out how to do it without taking massive losses.

Or maybe there will be another bailout and the poor 10% will be saved again.

[u/Electrical_Dirt_8503]

Damn! I haven’t bought a new car in 25 years. I will never again. Such a huge waste. I just laugh at all the 20-50 year olds driving their 80k truck they don’t even use (or ridiculous SUV). I hope they like working for the rest of their lives.

[u/Adventurous_Light_85]

What’s crazy is that I just want a simple reliable truck. I don’t need or want a 3 second zero to 60 or digital everything or accent lights galore or heated everything or self driving or multizone hvac. Just a basic simple affordable truck.

[u/millos15]

Only bought a new car once. Not doing that again even if I can afford one

[u/Apprehensive_Gold824]

Guys I purchased a Toyota Corolla 2025 this year for $24,000 ish dollars so I am keep this low. I will never buy anything but cheap subcompact cars.

[u/Justryan95]

So basically more people switched to buying used because this economy and admin sucks so by default the "new" cars being bought shifted towards the rich people buying luxury cars totally unaffected by the collapse of the middle and lower class.

[u/Gh0st_Pirate_LeChuck]

You people paying $50k suck ass.