The global automotive market is undergoing a deep transformation and the United States follows the same path. Despite still solid sales volumes, buying a new car in North America is becoming harder for the middle class and more concentrated among higher incomes.
Several industry analyses show a sharp shift in the profile of the average buyer in recent years. The market now splits into two distinct groups. High-income households keep purchasing increasingly expensive new vehicles. A growing share of consumers moves toward the used-car market, often out of necessity. Some economists describe this pattern as a “K-shaped economy”, where wealthier and more vulnerable groups move further apart.
US Auto market shifts as new cars move out of reach for middle class
Data confirm the change. The share of buyers earning below 100,000 dollars per year has dropped compared with a few years ago, while the percentage of households earning above 200,000 dollars continues to grow. For the industry, this shift means millions of potential customers lost in the middle segment, with a direct impact on total volumes.
Rising prices drive the trend. In 2025, the average price of a new car in the United States stands around 51,000 dollars. Higher insurance premiums add pressure, along with an inflationary environment that keeps eroding household purchasing power. The result shows a more fragile market than absolute numbers suggest.
Annual registrations, which exceeded 17 million units before 2020, struggle to return to those levels. The market closed 2025 with about 16.3 million vehicles sold, still a solid figure yet a sign of demand under pressure. At the same time, many automakers have reduced entry-level versions, making access to new cars harder for a growing portion of the population.
The industry acknowledges growing reliance on higher-spending customers. This imbalance creates a structural risk similar to the housing market, where affordability continues to decline. Some research indicates that about one third of Americans cannot afford a new car, while affordable model choices narrow significantly for lower incomes.
Monthly financing costs have also increased. A significant share of buyers now exceeds 1,000 dollars per month, reflecting higher prices and interest rates. The US market remains strong in volume but grows increasingly polarized, with major implications for the future of the entire automotive sector.
