According to Cox Automotive, a research firm, families with a household income of $150,000 or more now account for 43 percent of new car sales in the country, a significant increase from one-third in 2019, prior to the Covid-19 pandemic. In contrast, households with incomes less than $75,000 now purchase approximately a quarter of vehicles sold, a decline from over a third in 2019. "We are seeing a bifurcation of the market," said Jonathan Smoke, C

The auto industry has faced headwinds including tariffs that have increased the prices of cars and auto parts. Additionally, economic pressures have led to a rise in defaults on car loans, particularly among individuals with less-than-stellar credit. These factors have disproportionately affected lower-income consumers' ability to purchase new vehicles.

The shift in purchasing power towards wealthier consumers highlights broader economic trends, including income inequality and the uneven impact of economic policies. While affluent individuals have benefited from robust savings and well-paying jobs, many lower-income households have faced financial strain, limiting their ability to make significant purchases like new cars.