The gap between the “haves” and “have nots” in the new-car market continues to widen.
The details: Research shows that the share of new-vehicle buyers earning under six figures is shrinking, while high-income buyers are taking up more space in the market, reports CNBC.
Consumers with incomes under $100,000 accounted for just 37% of new-car buyers in 2025, down from 50% in 2020.
Market share for new-vehicle buyers with incomes of $200,000 or more climbed from 18% in 2020 to 29% in 2025.
What they’re saying: “We have a different vehicle buyer today than we had just a few years ago,” Cox Automotive senior economist Charlie Chesbrough said Thursday during an auto analyst event (via) CNBC. “The key takeaway here is that we’re seeing the average buyer here is much more affluent.”
Why it matters: The new-car floor is increasingly being held up by higher-income households, while a large slice of traditional buyers gets pushed into used, cheaper segments, or out of the market altogether. That means new-vehicle volume growth will depend more on winning (and retaining) affluent shoppers, while stores also need strong used, CPO, and payment-focused offerings to keep everyone else in the funnel.
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Between the lines: The growing split between buyers making around $100,000 and those earning more than $200,000 is another sign of a K-shaped market defined by affordability.
A third of the U.S. population can’t afford new vehicles, with those on the margin having very limited choices, according to a modeling study by Plante Moran.
The study found roughly 110 “affordable” models for households earning $65,000 or less, compared with more than 250 “affordable” models for those with incomes up to $105,000.
What they’re saying: “Anyone in the auto industry … we should all be very careful about consumer demand,” said Ford CEO Jim Farley during an event for the Detroit Auto Show, warning of consumers pulling back due to affordability issues, per CNBC. “That’s really important.”
Bottom line: New-car buyers are getting richer, but the pool is getting narrower. Dealers that double down on tailored experiences and inventory for high-income shoppers and build robust used/CPO, leasing, and payment-relief strategies for everyone else will be best positioned. Those who focus only on the top end risk losing relevance (and future loyalty) among the growing group of customers priced out of the new-car market.
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