One Million New-Car Buyers Are Gone and They're Not Coming Back Soon
One Million New-Car Buyers Are Gone and They're Not Coming Back Soon
Used Cars Have Become a More Attractive Alternative
Automakers Are Focusing on Higher-Profit Models
Some Consumers Are Choosing Alternative Transportation
The New-Car Market is on New Paths
New Cars Have Become Significantly More Expensive
Many Buyers Are Holding Onto Vehicles Longer
Insurance and Ownership Costs Keep Rising
Automakers Must Adapt to Changing Reality
The Market May Take Years to Recover
Affordable Models Are Becoming Scarcer
Younger Buyers Face Unique Financial Pressures
Higher Interest Rates Make Payments Harder to Manage
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The challenge in the automotive industry is not just a supply chain or product lifecycle one; it is also a consumer preference one. There have been an increasing number of potential customers who have been priced out of the new-car market, and they are not expected to be back anytime soon. Increasing vehicle costs due to rising prices, higher interest rates and increased ownership costs have left consumers with a gap between cost of vehicles and affordability. The consequence of this change will be a shift that may change the face of the industry for years to come.