Lower-Priced New Cars Gain In Popularity

DETROIT (AP) — An “affordability shift” is taking root in the U.S. auto industry. The trend is being led by people who feel they can no longer afford a new vehicle that would cost them roughly today’s average selling price of more than $47,000 — a jump of more than 20% from the pre-pandemic average. Yet there are other buyers who could manage the financial burden but have decided it just isn’t worth the cost. And the trend is forcing automakers to reassess their sales and production strategies. If the trend toward lower-priced vehicles proves a lasting one, more generous discounts could lead to lower average auto prices and slowing industry profits.