Looking to buy a cheap car? Good luck.
Affordable vehicles — new or used — are becoming harder to find in American dealership lots, according to fresh data from online automotive marketplace CarGurus.
In April, the average listing price for a new vehicle climbed to $50,400, up 1% from a year earlier.
Used-car prices, often viewed as a key gauge of vehicle affordability, are also under pressure, rising to nearly $30,000 — the highest level since August 2023.
“Prices have taken the spotlight again,” Kevin Roberts, the firm’s director of economic and market intelligence, said in a press release. “At the same time, affordability pressures continue to shape the market.”
Affordable vehicles haven’t disappeared entirely. Models like the Nissan Sentra, Hyundai Elantra, Toyota Corolla, and Honda Civic still start below or near $30,000, while used-car buyers can still find lower-priced inventory in older, higher-mileage vehicles.
But analysts say those options are becoming less common.
Several lower-cost vehicles — including the Mitsubishi Mirage, Nissan Versa, and Kia Soul — have either been discontinued or are being phased out of the US market.
At the same time, Americans continue gravitating toward larger, more expensive trucks and SUVs, which tend to generate higher profit margins for automakers.
According to a recent analysis from Moody’s, the US auto market has become increasingly dependent on wealthier households buying pricier vehicles. The ratings firm said rising vehicle prices and consumers’ preference for trucks and SUVs have reshaped the market in recent years.
“Reliance on financially stronger buyers stabilizes revenue and supports profitability for US automakers, but ties performance closely to a narrow customer segment,” Moody’s said in a note.
CarGurus said that shift is also reflected in which cars are appearing at American dealerships. The share of sub-$60,000 inventory shrank by 2% in April, helping push average vehicle prices even higher. Meanwhile, inventory for new vehicles priced above $70,000 has increased.
Gas prices are figuring in, too
Mario Tama/Getty Images
On February 28, the national average price of a gallon of regular gasoline was $2.98, according to AAA. By Monday, that figure had climbed to $4.52.
As fuel costs rise, shoppers are increasingly turning toward hybrids and electric vehicles, CarGurus says.
The company told Business Insider that views of new EVs and hybrids accounted for 20% of shopper interest on the platform in April. Used EV sales rose 17% year over year, while used hybrid sales jumped 29%.
Supply of EVs has tightened sharply in recent months as demand has increased. CarGurus said the market-day supply of new EVs has fallen 46% since February.
But even fuel-efficient options are becoming more expensive: used EV prices have climbed nearly 7% since February, according to the report.
