US auto sales are falling, cars are more expensive than ever

Mar 2012
56,305
37,878
New Hampshire
#1
U.S. auto sales are falling as vehicle prices climb, indicating that buyers at the lower end are getting squeezed out of the new car market, according to a new industry forecast.

First-quarter auto sales are expected to drop by nearly 2.5 percent from a year earlier, to 4 million units, according to J.D. Power and LMC Automotive.

Retail sales, which exclude sales to rental car companies and other commercial businesses, are expected to drop by about 5 percent to 2.9 million units. It's the first time first-quarter retail sales are projected to fall short of 3 million units in six years, said Thomas King, senior vice president of J.D. Power's data and analytics division.

The average price of a new vehicle is expected to hit $33,319, the highest ever for the first quarter. The data suggest that more and more buyers are getting squeezed out of the new vehicle market and are likely turning to used cars as manufacturers pull back on cheaper vehicles, said LMC Automotive President of Global Forecasting Jeff Schuster.

US auto sales are falling, and cars are more expensive than ever
 
Sep 2014
4,842
1,509
South FL
#3
U.S. auto sales are falling as vehicle prices climb, indicating that buyers at the lower end are getting squeezed out of the new car market, according to a new industry forecast.

First-quarter auto sales are expected to drop by nearly 2.5 percent from a year earlier, to 4 million units, according to J.D. Power and LMC Automotive.

Retail sales, which exclude sales to rental car companies and other commercial businesses, are expected to drop by about 5 percent to 2.9 million units. It's the first time first-quarter retail sales are projected to fall short of 3 million units in six years, said Thomas King, senior vice president of J.D. Power's data and analytics division.

The average price of a new vehicle is expected to hit $33,319, the highest ever for the first quarter. The data suggest that more and more buyers are getting squeezed out of the new vehicle market and are likely turning to used cars as manufacturers pull back on cheaper vehicles, said LMC Automotive President of Global Forecasting Jeff Schuster.

US auto sales are falling, and cars are more expensive than ever
The average price isn't really a good indicator of the affordability of cars because the average price really is so high because Americans choose to spend those sums. Obviously they don't have to and there are excellent options below $20k for Corolla, Civic, Cruze, Focus vehicles.

Of course economically buying new is just fucking stupid because the biggest depreciation happens the moment you roll the new car off the lot. Indeed, lower income individuals are making the rational choice buying used.
 
Mar 2019
2,385
1,322
Down a back road turn south on a gravel drive
#4
Car prices are too high. I wish they could just keep making the old designs. Probably govt regulations like EPA and others get in the way of that. And it costs the consumers when we have to go buy a vehicle.
 

Babba

Former Staff
Jul 2007
75,356
65,766
So. Md.
#7
The average price isn't really a good indicator of the affordability of cars because the average price really is so high because Americans choose to spend those sums. Obviously they don't have to and there are excellent options below $20k for Corolla, Civic, Cruze, Focus vehicles.

Of course economically buying new is just fucking stupid because the biggest depreciation happens the moment you roll the new car off the lot. Indeed, lower income individuals are making the rational choice buying used.
The article states that fewer and fewer of the less expensive models are being produced.
 
Sep 2014
4,842
1,509
South FL
#8
The article states that fewer and fewer of the less expensive models are being produced.
They will produce what people buy. It's not like people go to the car dealer, find no Civics and opt for an Accord. They buy Civics, more people want Accords and even more want F-150s or Silverados.
 
Jan 2016
54,770
51,304
Colorado
#9

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