After years of buying expensive cars and seeking luxury, more and more consumers are putting their all into cheaper, more reliable cars that get the job done well.
Over the past nine months, sales of cars priced at $100,000 or more have fallen about 46% from a year ago, the Boston-based Motor Transportation Authority said. Cargurusa company that researches and sells automobiles. Sales of cars in the slightly cheaper price ranges of $80,000 to $90,000 and $90,000 to $100,000 increased only slightly, at 1.3% and 4.2%, respectively.
Compare this to the massive jump of almost 44% in vehicle purchases between $20,000 and $30,000. All but one vehicle price range ($0 to $20,000) saw double-digit increases under $60,000.
In the used car market, sales of vehicles priced between $15,000 and $20,000 increased 62.6% year over year. Sales of used cars priced above $30,000 have fallen significantly over the past nine months, with vehicles in the $40,000 to $50,000 range seeing a decline of up to 30.5%. Meanwhile, purchases of used models worth $100,000 or more fell by just 1.4%.
“As we near the end of 2024, it’s clear that consumers are talking loudly about their wallets,” said Kevin Roberts of CarGurus (Karg),” the Director of Economic and Market Intelligence said in a statement. “After years of retaliatory spending post-pandemic, consumers are becoming more cautious in the face of economic uncertainty, still-high interest rates and persistently high auto prices,” Roberts added.
That’s how the American economy is, quite strongAmericans’ perceptions and priorities are: changedmany still remain uncertain, especially in the future. election year. When it comes to cars, CarGurus notes that the impact of the Federal Reserve’s interest rate cuts will not bring much relief to consumers, as car prices remain high. According to , the average vehicle price in August was $47,870. kelly blue book. The biggest growth was in the inexpensive vehicle segment, with sales of new cars priced between $30,000 and $40,000 and $40,000 and $50,000 increasing by 33% and 20%, respectively. did.
That’s partly because it’s really hard to find cheap cars. But the few sub-$20,000 models automakers still sell, such as the Mitsubishi Mirage and Nissan Versa, will be soaring by 2024. Motor1 reported.
Morgan Stanley (M.S.) Analyst Adam Jonas said in a note to clients last month that the average monthly car payment has reached $700. According to market watchCar payments should not exceed $675 per month unless an individual has a monthly take-home pay of $6,000 after taxes.
