Annual US auto sales fall to 16 million vehicles from pre-pandemic levels of 17 million, driven by high prices and interest rates.
US new-car sales are projected to remain near 16 million units this year, down from 17 million before 2020, as one million potential buyers exit the market. Analysts cited by the Journal do not expect a rebound until later this decade, if at all.
The decline reflects affordability pressures, with average new-vehicle prices around $50,000, elevated interest rates, and rising costs for gas, insurance, and repairs. The shift signals a broader erosion of middle-class purchasing power.
The trend underscores a structural change in consumer behavior, as new cars transition from a middle-class staple to a luxury purchase for many households.