{"id":5177,"date":"2026-08-23T22:06:48","date_gmt":"2026-08-23T22:06:48","guid":{"rendered":"https:\/\/usmovingexpertss.com\/?p=5177"},"modified":"2026-08-23T22:06:48","modified_gmt":"2026-08-23T22:06:48","slug":"an-808-monthly-payment-is-reshaping-who-can-afford-a-new-car","status":"publish","type":"post","link":"https:\/\/usmovingexpertss.com\/?p=5177","title":{"rendered":"An $808 monthly payment is reshaping who can afford a new car"},"content":{"rendered":"
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Americans haven\u2019t stopped buying cars, even with gasoline prices rising and vehicle affordability remaining out of reach.<\/p>\n

Read more Trump caps summer of US 250th birthday at IndyCar race through Washington<\/a><\/p>\n

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Gas prices surged above $4.50 a gallon in May, interest rates are still high, and owning a vehicle is a far bigger financial commitment than it was before the crisis. But Americans are still showing up at dealers.<\/p>\n

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That resilience is good news for automakers such as Ford Motor (F)<\/strong>, which relies heavily on North American vehicle demand. But new data from the Bank of America Institute suggests there\u2019s a significant weakness hiding beneath the headline sales numbers: Higher-income Americans are increasingly carrying the market.<\/strong><\/p>\n

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Car sales hold up despite pressure on consumers<\/h2>\n

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U.S. auto sales were at a seasonally adjusted annual rate of 16.3 million in July, Bank of America said. That\u2019s down a tick from 16.5 million in June, but above the 2025 average.<\/p>\n

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The National Automobile Dealers Association reported another report confirming the July sales pace of 16.3 million, down 1.4% from the year-ago level.<\/p>\n

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That\u2019s significant because prices at the pump were above $4.50 a gallon in May, according to Bank of America.<\/p>\n

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One reason drivers haven\u2019t hit the brakes is that today\u2019s automobiles consume substantially less fuel. The average new light-duty car today achieves close to 30 miles per gallon, compared with about 20 mpg in the 1980s, Bank of America said.<\/p>\n

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Hybrids are also gaining market share. Hybrid sales rose 19.6% year over year in July and accounted for 15.4% of new vehicles sold in the first seven months of 2026, NADA noted.<\/p>\n

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But sales have held up for another reason: It\u2019s Americans with the money to pay higher prices who are doing most of the shopping.<\/p>\n

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Bill Pugliano \/ Getty Images<\/p>\n

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Wealthier Americans are keeping the auto market moving<\/h2>\n

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Since the pandemic, the surge in originations of new and used cars has been leaning more toward higher-income consumers, according to internal auto-loan statistics from Bank of America.<\/p>\n

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A more noticeable signal comes from substantial payments to auto firms and vehicle-finance providers.<\/p>\n

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Among Bank of America customers making qualifying payments of more than $2,000 from May through July, higher-income households made up for more than 40% of transactions<\/strong>. Lower-income households account for less than 20%<\/strong>.<\/p>\n

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In that analysis, Bank of America defines higher-income customers as those who make more than $125,000 a year and lower-income customers as those who earn less than $50,000.<\/p>\n

Read more Nissan scrapped a bank it couldn\u2019t afford to build<\/a><\/p>\n

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That helps explain an apparent contradiction in today\u2019s economy: Car sales can look pretty solid, even while affordability feels punitive for millions of households.<\/p>\n

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And the affordability crisis isn\u2019t going away.<\/p>\n

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The average new-vehicle transaction price was $49,855 in July, up 1.9% from a year ago and the highest level of 2026, Kelley Blue Book confirmed. Buyers have increasingly moved toward cheaper segments such as tiny vehicles and smaller SUVs.<\/p>\n

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Financing adds another layer. NADA, citing J.D. Power estimates, put the average monthly payment on a new-vehicle finance contract at $808 in July<\/strong>, up 3.3% year over year and a record for the month.<\/p>\n

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Car affordability by the numbers<\/h3>\n

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