Between 2015 and 2019, new car sales in the United States bottomed out at 17 million. Many analysts and dealers believe that high new car prices and borrowing costs are the main reasons why new car sales in the United States have not recovered by 2024.
Data from research firm JD Power shows that due to more discounts offered by automakers and dealers, the average price of a new car in the United States in September was $44,467 (about RMB 313,300), down nearly 3% from last year. Despite this, the current price of new cars in the United States is still much higher than before – for comparison, the average price of a new car in the United States at the end of 2019 was $34,600 (about RMB 243,800).
An analyst told the Wall Street Journal that for consumers who return to dealerships to buy cars after five or six years, the high prices of new cars have brought a huge impact. “The prices of new cars are unaffordable for consumers,” she said.
And while the Federal Reserve has cut its benchmark U.S. interest rate, that hasn’t significantly lowered borrowing costs for car buyers. The average monthly loan payment for a new car in the U.S. was $734 in September, slightly higher than last year, according to J.D. Power.
As car purchase costs increase, more and more American consumers choose to lease new cars. Data shows that among new car sales in the third quarter of the United States, about 25% of consumers choose to lease. In comparison, the data for the same period in 2023 was 20%.
Cox Automotive said U.S. sales of small cars and SUVs have risen over the past year, while sales of midsize cars, trucks and large SUVs have fallen, suggesting that U.S. consumers are shifting to more affordable vehicles.
“I don’t think people really want these very small cars, but that’s what they can afford right now,” said Cox Automotive researcher Carolyn Miller.
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