Growth in the U.S. Auto Sector is Falling Flat

Prospective U.S. car-buyers are shying away from higher prices in the auto industry – as average new car prices approach $50,000. Auto sales are slowing, and consumers are shifting towards more affordable models. 2025 was originally predicted to be a strong year for the industry – between the U.S. deregulatory wave and tax cuts – but analysts are now projecting flattened growth in the sector for 2025 and potentially into 2026. This increased strain in the auto market is visible with slowing vehicle turnover, more dealer discounts on sales, and an increasing subprime default rate. While some sects of the U.S. consumer are being stretched, the wealthiest Americans are continuing to purchase luxury vehicles.  

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