Affordable vehicles are becoming harder to find for Americans

"According to a recent analysis from Moody's, the US auto market has become increasingly dependent on wealthier households buying pricier vehicles. The ratings firm said rising vehicle prices and consumers' preference for trucks and SUVs have reshaped the market in recent years. "Reliance on financially stronger buyers stabilizes revenue and supports profitability for US automakers, but ties performance closely to a narrow customer segment," Moody's said in a note."

Average listing prices for new vehicles rose to $50,400 in April, increasing 1% from a year earlier. Used-car listing prices climbed to nearly $30,000, the highest level since August 2023. Affordable models still exist, including Nissan Sentra, Hyundai Elantra, Toyota Corolla, and Honda Civic, with starting prices below or near $30,000. Lower-priced used inventory can still be found in older, higher-mileage vehicles, but such options are becoming less common. Several lower-cost models have been discontinued or phased out, including Mitsubishi Mirage, Nissan Versa, and Kia Soul. Demand has shifted toward larger trucks and SUVs, supporting higher profit margins and increasing reliance on wealthier households.

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