Buying a brand-new car in America has become a luxury increasingly reserved for the country’s highest earners, with the wealth gap reshaping the auto industry.
Families earning $150,000 or more per year now account for 43% of all new cars sold in the United States, a striking jump from one-third of all sales recorded in 2019.
At the opposite end of the income spectrum, households earning under $75,000 annually now represent just a quarter of new car buyers, down from more than a third before the pandemic.
That dramatic shift in just a few years is forcing automakers to chase wealthier customers with premium models and higher trim levels, because that is where demand is concentrated.
The share of new cars sold above $50,000 was nearly double what it was in 2019 as of August 2025, according to data from Cox Automotive.
The market for ultra-premium vehicles has exploded alongside that trend, with roughly 33 models now carrying a manufacturer’s suggested retail price above $100,000.
By contrast, only 18 models are currently available with a base price below $30,000, a sharp reversal from conditions that existed just a decade ago.
In 2017, automakers produced 61 models priced at $60,000 or more; today that number has grown to 114, while models priced at $25,000 or under have collapsed from 36 to just four.
Nissan recently canceled what had been the last remaining new car with a sub-$20,000 price tag, effectively eliminating the entry-level segment of the American new car market.
Wealthier buyers have been buoyed by rising home values, strong stock market returns, and favorable access to credit, advantages that lower- and middle-income Americans simply do not share.
Cox Automotive executive analyst Erin Keating described the problem in stark terms, saying, “We either need a much more viable, lower cost alternative or something needs to happen in the financial markets that really loosens the ability for those buyers to purchase.”
Cox Automotive chief strategy officer Jonathan Smoke reinforced that picture, stating, “Spending is consistently being driven by high-end consumers. Lower-income households continue feeling the strain of stretching their paychecks.”
The spending of the top 20% of earners now accounts for 60% of total personal outlays in the United States, making broader economic growth unusually dependent on a narrow slice of the population.
That concentration of spending power means any significant disruption to asset valuations, whether in housing or equities, could have outsized consequences for the auto industry and the wider economy.
