$777 average monthly payments and 23.9% of financed deals at 84 months or longer marked record highs in the second quarter, underscoring how far new vehicles have moved out of reach for many buyers.
$48,852 average new-vehicle transaction prices through June—up from $37,310 in 2019—combined with higher interest rates to create a double squeeze, especially for lower- and middle-income households that rely more on financing.
Automakers' shift away from small cars has thinned the lower-price end of the market, leaving few basic options even as entry models such as the Hyundai Venue start above $20,000 and many buyers add costly features.
32% of consumers in a recent McKinsey mobility survey said they plan to delay their next vehicle purchase for financial reasons, showing how affordability pressures are now weighing on demand as tariffs and higher gas prices add fresh strain.