Affordability angst hits buyers as cars climb past $50K
Stretching budgets, longer loans and a bifurcated market are reshaping how Americans buy cars. While high-end pickups and SUVs keep selling at premium prices, many shoppers are shifting to older used vehicles or delaying purchases altogether as the average new-car price tops $50, 000.
Price shock: real buyers, real choices
For 27-year-old Kenneth Slowik, affordability meant a 1998 Chevrolet GMT truck bought for $900. The driver-side door was broken; he taped it shut to keep out winter cold. The truck runs well enough to get him and his wife to work, he says, but it’s a stopgap until he can afford something newer.
That contrast helps explain why the average sale price for a new full-size pickup reached roughly $66, 000 in January 2025 (ET), even as the average new vehicle approaches a $50, 000 price point. The market is showing a sharp split: expensive, highly equipped models are selling strongly, while many middle- and lower-income buyers retreat to used cars, older vehicles or no purchase at all.
Longer loan terms have become common as buyers try to make monthly payments manageable. The downside: extended loans often outlast warranties and can leave buyers upside-down on the loan-to-value ratio. Many owners are also keeping their cars far longer — vehicle age is pushing toward 13–14 years — reflecting limited access to affordable replacements.
Manufacturers, profits and the search for cheaper cars
Automakers have reaped strong margins from large SUVs and pickups, a product strategy that has helped overall sales even as basic, affordable models have dwindled. High-income buyers have propped up new-vehicle demand, keeping assembly lines humming and dealership lots moving.
Analysts warn that this buoyancy may not hold. Forecast work projects about a 2% decline in U. S. new-vehicle sales this year, to roughly 15. 98 million units, reflecting a market that may be nearing a tipping point if broader consumer unease deepens.
Market researchers point to other countries — notably China — as examples of how automakers can balance volume and price. Producing genuinely affordable models could preserve market access for lower-income buyers, keep plants running and support employment through economic cycles. Industry voices urge a renewed push to engineer low-cost cars, not only premium models that deliver bigger margins.
At the same time, shifts in regulation and technology have complicated choices. Changes in emissions and electrification policies have nudged some manufacturers toward hybrids and electric vehicles, even as many U. S. buyers continue to favor gas-powered trucks and SUVs.
What buyers can do now
For consumers navigating this market, financial discipline matters more than ever. Experts recommend focusing on the total out-the-door price rather than only monthly payments, shopping around for preapproved financing from credit unions or banks, and avoiding loan terms that exceed the useful life of the vehicle or its warranty.
Used-car shopping can require patience and careful inspection: buyers should weigh immediate cost savings against long-term repair risks and insurance costs. For households stretched by student loans, rising rent and stagnant wages, public- and private-sector solutions will be necessary to restore entry-level affordability.
Until then, many buyers will keep breathing new life into older vehicles or make do with modest, patched-up transportation — a stark reminder that not all parts of the market are moving in the same direction as sticker prices continue to climb.
