For most Americans, affording a car is far more difficult now than it was before the COVID-19 pandemic, and it’s not getting much easier. The U.S. automotive market is returning to normalcy after years of supply chain issues, depressed demand for new cars, and low vehicle inventories.
However, a new or used car is often too expensive for Americans who are already battling inflation. “Cars are not nearly as affordable today as they were five years ago,” Karl Brauer, an executive analyst at car search engine and price aggregation service iSeeCars.com, told our colleague, Austin Alonzo.
In 2019, a consumer with a budget of $20,000 could afford about 50 percent of the used cars on the lot in the United States, Brauer said. In 2023, only 13 percent of used cars fell within that price range.
Things are harder for new car buyers, especially when high interest rates are added to already elevated car prices.