Expensive New Cars: Market Shifts Lock in Higher Prices and Slower Demand
New-car prices are rising not just because of tariffs but also due to automakers prioritizing upscale models and limiting budget options, pushing the average price toward about $47,000. Dealers report a 75-day supply as demand cools, meaning inventory lasts longer even with more cars on lots. In China, February vehicle deliveries fell about 15% after subsidy cuts, though exports rose and BYD expanded; Porsche’s China sales are shrinking as local EVs gain ground. Taken together, these dynamics suggest a tougher market that could push more buyers into the used-car market and influence future model strategies.