The Truth Behind the ‘Missing Million’ Car Buyers

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The Truth Behind the ‘Missing Million’ Car Buyers

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CarScoops had an article that was picked up by the national press, talking about how the overall auto market pre- and post-covid has dropped by nearly a million sales. The premise is that automakers are chasing the higher profit margins of higher priced vehicles, leading tot he elimination of the sub-$20k market. While this is all true, it's only part of the issue. Continuing to look at the data, car prices have largely tracked inflation, and the disappearance of the sub-$20k vehicles nt only has to do with buyer preferences, but simply price increases eliminating that band of pricing. Just as we can't buy a $5000 or $10000 car today, $20,000 seems to be the new "floor" It doesn't have to be, as manufacturers in Europe and Asia offer sub-$20,000 vehicles, but it would take political will and buyer preferences changing to welcome those to our market.

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