For many car buyers, 'affordable' price is still out of reach

For many car shoppers, “affordable” is still out of reach as both used and new-vehicle costs strain budgets. The article notes that used car prices have risen 41% since 2019 and frames affordability as a central issue for lower and middle income buyers, especially with fewer smaller cars in the new-vehicle lineup. Edmunds.com head of insights Jessica Caldwell links today’s pressure to the COVID-era microchip shortage that triggered price spikes, compounded by rising interest rates. It also cites the Urban Institute, reporting nearly half of U.S. families can’t afford the true cost of living. New car average transaction prices through June reached $48,852 versus $37,310 in 2019. A McKinsey survey of 20,000 mobility users found 32% plan to delay purchases and 45% consider smaller categories.