Prices for New Cars Have Soared. Here's One Big Reason Why.

The article focuses on the persistent affordability challenges in the U.S. car market, where automakers have increasingly prioritized larger, upscale vehicles over budget models, raising the average new-car price to about $47,000. This shift has led to a decline in new-vehicle purchases by households earning $100,000 or less, who now represent only 36% of sales, pushing many middle- and lower-income consumers toward the used-car market. Traditional automakers like General Motors, Ford, and Stellantis have phased out many lower-priced models in favor of more profitable trucks and SUVs, though some efforts to improve affordability are underway. The trend poses a competitive risk if lower-priced foreign brands, such as Chinese automakers, enter the U.S. market. [Extracted from the article]