No Cars For Middle Class
This is an interesting trend.
Experts in the automotive industry now believe that the new car business model is changing to produce fewer new vehicles at higher prices because only wealthy Americans are able to afford brand new vehicles.
They believe this is happening because of the supply chain issues which has caused prices to rise on newer cars thanks to President Biden’s inflation.
According to The Hill, consumers are being pushed out of the new car market because automakers are looking to earn higher profit margins on the lower number of new vehicles that they can make.
In November the cost of a new car reached an average of $48,681.
Cox Automotive analyst Michelle Krebs explained, “Because there’s been this shift, the people who can buy [new] cars now are much more affluent than before. Less affluent people have fallen out of the market. They’ve fallen into the used car market or they’ve fallen out of the market altogether.”
Before the pandemic started, United States automakers were making 11 million vehicles per year. Now, after the pandemic the same automakers are only making fewer than 10 million vehicles a year.
President Biden’s inflation has essentially kicked middle class Americans out of the new car market. If a middle class American now hopes to purchase a brand new vehicles he or she will either have to save in advance to put down a larger than usual down payment or cut other expenses that they have to make the monthly payments on a new vehicle.
