All articles tagged with #vehicle pricing
Vehicles priced between $20,000 and $29,999 are selling 20% faster than at the start of 2026, yet overall sales for compact cars and SUVs have declined due to limited inventory. Buyers are increasingly turning to the used market or extending loan terms to afford vehicles, as new affordable options become harder to find.
Bain & Company warns the U.S. auto market could decline by more than 2 million vehicles by 2040 due to slowing population growth, lower birth rates, high car prices, and shifting mobility preferences, with younger buyers delaying or forgoing new car purchases, longer vehicle lifespans, and potential delays in autonomous-vehicle adoption fueling intensified competition and industry consolidation.
GM says the Iran war is pushing up costs, but demand for expensive vehicles remains resilient, with Q1 average vehicle transaction price around $52,000. First-quarter sales fell about 9.7% amid tighter inventories and a retooling cycle for full-size pickups. The company is offsetting higher costs through cost cuts, efficiency gains, and tariff relief, and is diverting shipments to the U.S. to reduce exposure to the Middle East, while signaling readiness for potential shifts toward more affordable or electric models if needed.
With December 2025’s average new-car price at a record $50,326, buyers are increasingly financing for longer terms: 20.8% of loans were 84 months or longer and the average payment reached $722, while down payments dipped to about $6,228. The total cost of ownership has risen roughly 48% since 2019. A January dip to around $49,191 is not yet a trend. Longer loan terms also raise the risk of negative equity if car values fall.