I know that because of politics, the phrase “middle-class” has been reduced to a nearly meaningless buzzword, but stick with me, because things are bleak when it comes to new car buying. Because of ever-increasing car prices, middle-class consumers are more likely than not to shy away from new vehicle purchases in 2026.
New car sales are projected to decline to 15.8 million vehicles in 2026, and that represents the first annual drop since 2022. Hell, they were even slowing down toward the end of 2025. It’s largely due to soaring prices, so as you may have imagined, the rich aren’t really impacted. New car sales have soared 45% among high-income households since 2019, but they’ve dropped 30% for folks earning less than $75,000 per year. From the Los Angeles Times:
The main culprit [for this decline] is nervousness among consumers making less than $150,000 a year who’ve pulled back because prices have simply gotten too high, underscoring broad consumer angst around the cost of living that persisted throughout 2025. Cox expects the trend to continue this year, forecasting auto sales of 15.8 million vehicles, which would mark the auto industry’s first annual drop since 2022.
The outlook reflects how growing economic inequality is changing the auto industry. New-car sales have soared 45% among households with annual incomes of $150,000 or more since 2019, according to Cox. Yet they’ve plunged 30% in the same period for those earning $75,000 or less, while sales dropped 7% among families with incomes between $75,000 and $150,000.
[…]
Fears that duties would drive prices even higher fueled a sales surge early last year before the levies took effect. Yet the import taxes haven’t yet pushed up stickers, in part because automakers are largely absorbing the higher costs and due to moves by the government that have provided carmakers with some relief.
Tariff-driven price hikes would only add to the industry’s affordability challenge. S&P Global Mobility forecasts sales will decline to about 15.9 million vehicles this year, citing cautious consumers and the potential that carmakers will adjust pricing as the main culprits.
Outside of tariffs, there are a few factors driving up prices, such as a lack of smaller, entry-level offerings (which many of us sorely miss). These companies are also, very simply, producing fewer cars. Since there are now fewer cars on dealer lots, they’re less inclined to offer rebates or negotiate on prices.
Of course, none of this matters if you make a lot of money, but some of us were born handsome, not rich, and that’s our cross to bear.
