Business Insider·4 min read·medium

Buyers are shopping for cheaper cars. New-car prices are still near a record.

Buyers are shopping for cheaper cars. New-car prices are still near a record.
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Despite consumer demand for more affordable vehicles, new-car prices remain near record highs. Buyers are increasingly switching to smaller models and different brands to manage costs as inflation persists in the automotive sector.

Why it matters

The automotive market reflects broader economic tensions, showing how inflation and consumer behavior are forcing shifts in manufacturing and purchasing habits.

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New vehicle prices are just $52 away from a fresh record high. FREDERIC J. BROWN/AFP via Getty Images Shoppers are turning to smaller cars as gas and vehicle prices keep climbing. They're even willing to try out new car brands, Cox Automotive found. Still, car prices keep climbing and are nearing an all-time record. There's a tension playing out on American car dealership lots: Shoppers want cheap cars , but prices keep going up and up. That's what Cox Automotive found in its September numbers. Last month, the average new car transaction price was $50,562, a nearly 1% rise from the month before, and just $52 below a record high, the data firm found. The average price is up 0.7% from a year ago. At the same time, buyers are gravitating away from full-size segments toward more affordable options.

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