Vehicle ownership has long been a big part of the American dream. But it is getting harder for some buyers as automakers pare back cheaper models to chase well-heeled customers who can afford big, loaded pickups and SUVs. New vehicles now list for an average of nearly $50,000, up 30% in six years.
Zelenskyy says Ukrainian forces shot down Shahed drones in Middle Eastern countries during Iran warImmigration board denies Mahmoud Khalil's appeal, bringing activist one step closer to deportationAP Exclusive: Trump administration admits a glaring error in its New York health fraud accusationsIchiro Suzuki's statue unveiling has a mishap as bat snaps during ceremonyChina's K-pop worries: The reasons why a ban on Korean entertainment has lasted a decade Britain celebrates late Queen Elizabeth II as a style icon to mark her centenaryInflation could jump by the most in nearly 4 yearsArtemis II’s record-breaking journey around the moon ends with dramatic splashdownPeople 'bathe' in nature to get respite from chaotic news cycleRaccoon goes on drunken rampage in Virginia liquor store and passes out on bathroom floorYou aren't the only one who just sits in the car before or after a long dayInspired by Picasso, an AP photographer visualizes a blind person ‘seeing’ artCoal's fortunes shift as Trump uses orders and taxpayer money to keep plants operatingToo young for the MMR shot, babies become 'sitting ducks' in measles outbreaksYou aren't the only one who just sits in the car before or after a long dayCoachella looks like fun and glamour for influencers.
Behind the scenes, they fiercely strategizeFor Chinese visa-seekers in the US, the path to good fortune lies in … Chick-fil-A?From 'BuddhaBot' to $1.99 chats with AI Jesus, the faith-based tech boom is hereIsrael bombardea Beirut y mata a 182 personas; alega que tregua con Irán no es válida para LíbanoIranian delegation arrives in Pakistan for talks with the US Behind the scenes, they fiercely strategizeFor Chinese visa-seekers in the US, the path to good fortune lies in … Chick-fil-A?From 'BuddhaBot' to $1.99 chats with AI Jesus, the faith-based tech boom is hereIsrael bombardea Beirut y mata a 182 personas; alega que tregua con Irán no es válida para Líbano Los números: EEUU arrasó con objetivos militares en Irán, pero aún le quedan capacidadesMade with a slow shutter speed and zoom lens, an unsold 2026 Cooper S hardtop is diplayed in a Mini dealership Friday, Oct. 24, 2025, in Highlands Ranch, Colo. A sticker shows the price for an unsold 2024 Colorado pickup truck at a Chevrolet dealership Sunday, June 2, 2024, in Lone Tree, Colo. Made with a slow shutter speed and zoom lens, an unsold 2026 Cooper S hardtop is diplayed in a Mini dealership Friday, Oct. 24, 2025, in Highlands Ranch, Colo. Made with a slow shutter speed and zoom lens, an unsold 2026 Cooper S hardtop is diplayed in a Mini dealership Friday, Oct. 24, 2025, in Highlands Ranch, Colo. A sticker shows the price for an unsold 2024 Colorado pickup truck at a Chevrolet dealership Sunday, June 2, 2024, in Lone Tree, Colo. A sticker shows the price for an unsold 2024 Colorado pickup truck at a Chevrolet dealership Sunday, June 2, 2024, in Lone Tree, Colo. DETROIT — After a few years of sharing a 2019 Chevrolet Trax, Dana Eble and Tyler Marcus are finally looking for a second car. But as they jump into the market, the young married couple isn’t sure what they can afford. “I just keep seeing a lot of different aspects of life getting more expensive, and it’s harder,” said Eble, an account manager for a public relations agency. Car ownership has long been integral to the American dream. But as automakers slash the production of inexpensive models to cater to customers who can afford oversized pickups and sport utility vehicles, buyers find themselves facing sticker shock at the same time they are already frustrated by the lingering effects of high inflation.in March, the biggest yearly increase since May 2024, while new car prices were up 12.6% from a year ago, the Labor Department reported Friday. New vehicles now sell for an average of nearly $50,000, up 30% in six years, and average monthly payments — based on 10% down and a 6-year note — recently hit $775. Looking for something on the cheap end? The share of vehicles listing for less than $30,000 is about 13% — down from 40% five years ago, per the car review site CarGurus. To cope, buyers are spreading their payments out longer. Consumers choosing 7-year loans make up more than 12% of all sales, up from nearly 8% a year ago, according to auto buying resource J.D. Power. Such contracts wind up costing more in the long run because of interest payments.“The ability to buy transportation is still out there. The question is just, what do you get for your money?” Charlie Chesbrough, a senior economist at Cox Automotive, said., say they feel like everyday needs like housing, food, utilities and child care are getting costlier and wages aren’t keeping up.Sticker prices have been rising since automakers discovered Americans are willing to pay more for bigger, more expensive SUVs and pickup trucks that bring the companies more profit from each sale. They have largely phased out smaller, cheaper sedans. That is especially true for domestic carmakers; the average selling prices for many vehicles from Ford Motor Co., General Motors and Jeep-maker Stellantis have generally trended higher than those for Asian companies Honda, Hyundai, Mazda and Subaru. Car companies are also savvy about placing desired options in more expensive trim levels that can lure consumers into a vehicle that costs more than they planned, said David Undercoffler, the head of consumer insights at CarGurus. Advanced safety technology — lane-keep assist, automatic emergency braking, blind-spot monitoring, collision warnings and more — all add to the cost of a vehicle. Automakers are required by federal industry rules to add some features, such as rear-view cameras. The COVID-19 pandemic pushed up auto prices because production fell, affecting both the new and used markets. Though production recovered, other supply chain disruptions andhave affected prices. Meanwhile, government data shows that car insurance prices have soared 55% compared with six years ago, or just before the pandemic, driving up the number ofThe share of new car buyers earning below $100,000 fell to 37% last year, down from 50% in 2020, according to Cox Automotive.it would have several vehicles prices under $40,000 by the end of the decade. GM has pointed to vehicles from Buick and Chevrolet, including the Trax, as cheaper options.Chesbrough thinks consumers are sometimes unrealistic in their wants. “There are vehicles out there for less than $30,000. What everybody wants is the mid-sized SUV with leather seats and the sunroof for $25,000, and that’s not available,” Chesbrough said.But as those buyers shift to used, they are finding fewer affordable options there, too. The share of used vehicles priced less than $30,000 fell from 78% in 2021 to 69% in February, according to CarGurus. The average used vehicle sold for about $25,000 in February, and the average used monthly payments hit $560. The inventory of used cars is being hit by a couple of trends. One is that consumers keen to avoid a big expense are hanging on to their cars longer — nearly 13 years on average now, 18 months longer than a decade ago, according to the. And a downturn in the popularity of leasing means fewer two- and three-year-old cars hitting the market after leases expire. J.D. Power estimates that consumers might spend up to $140 less on a lease payment than the average finance commitment, a good option especially for drivers whose annual mileage is predictable. But experts say there is still an affordability challenge.Sam Dykhuis, 27, of Chicago, needed to buy her first car recently when she started a new job as a scheduler for United Airlines. She searched for something used under $20,000, and eventually paid a little more than that for a 2021 Mazda CX-5. To hold down the cost, she tapped savings to buy the car outright. She pays insurance six months at a time to save a few bucks, too. Still, “My paycheck went down and my expenses went up,” Dykhuis said. “Certainly, I have to be more just on top of it than I was previously.” Eble, 30, and Marcus, 31, say they appreciate cool vehicles but don’t consider themselves “car people” and are hoping their search is easier as a result. Still, finding something in their $20,000 to $30,000 budget might not be as easy as it once was.. New EVs generally cost more upfront, but consumers can save in the long run. The used EV market will also soon be flooded with two- or three-year-old EVs that were leased at the time federal credits were generous.“It feels like if anything happens out of our control … it just seems so much more difficult to figure out how to orient our finances,” Eble said.St. John is a climate reporter for The Associated Press based in Detroit. She covers environmental and energy policy, breaking climate news and extreme weather.
Mazda Motor Corp. Ford Motor Co. Cars Auto Industry General News Domestic News Michigan MI State Wire Iran Cargurus Inc. Transportation Technology Dana Eble Subaru Corp. Sam Dykhuis Economic Indicators Business Honda Motor Co. Ltd. Charlie Chesbrough Tyler Marcus Climate And Environment David Undercoffler Lifestyle Stellantis NV U.S. News Climate U.S. News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Video: US Army’s next-gen combat vehicle adds autonomy, 50 mm cannon powerThe U.S. Army moves the Lynx XM30 into procurement with a $547 million request for 19 next-generation combat vehicles.
Read more »
News Roundup: Vehicle Stranded in Mexico, Unusual Vulture Activity, and Political Campaign StrategyThis news summary covers a variety of stories including a lawsuit against USAA, a strange event involving vultures in San Antonio, and a unique political campaign strategy by a congressional candidate in Texas.
Read more »
Woman accused of assaulting state trooper during stolen vehicle investigationA woman has been arrested and charged after police said she assaulted a Delaware state trooper during a stolen vehicle investigation.
Read more »
Motorcyclist seriously injured after crash with vehicle on West Parmer Lane in NW AustinA motorcyclist is in the hospital with serious injuries after a crash with a vehicle in northwest Austin.APD said the crash happened at around 9:07 a.m. in the
Read more »
Maximize Your Vehicle's Utility: The Ultimate Guide to Hitch AccessoriesDiscover the essential hitch accessories that can significantly expand the functionality of your truck or SUV. From cargo carriers and bike racks to grills and bed extenders, learn how to choose the right accessories and make the most of your vehicle's trailer hitch.
Read more »
American Airlines raises bag fees amid higher fuel costs and the war in IranAmerican, the largest carrier at Philadelphia International Airport, became the latest airline to increase prices amid rising fuel costs.
Read more »