Americans shift to more affordable cars as prices, insurance costs increase nationally: report

Published On Oct 22, 2024, 7:05 PM

As inflation affects consumer spending, Americans are increasingly opting for more affordable cars, shifting away from luxury models. The average car price has climbed to $47,000, prompting nearly half of new-car shoppers to seek vehicles costing $35,000 or less. The rising cost of vehicle ownership—including a significant increase in auto insurance—has exacerbated this trend. Affordable models like the Chevrolet Trax are seeing strong sales, and car manufacturers are responding by introducing lower-priced vehicles, including Kia's upcoming EV4, priced between $30,000 and $35,000.