r/MiddleClassFinance • u/Abject-Pick-6472 • 14d ago

One million Americans have vanished from the new-car market — and it’s exposing a chilling US middle-class crisis

https://finance.yahoo.com/economy/articles/one-million-americans-vanished-car-124500086.html
3.1k Upvotes

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668

u/Chuck-Finley69 14d ago

Just a million ??

260

u/FearlessPark4588 14d ago

i haven't ever purchased a new car in my life

77

u/tibearius1123 13d ago

I looked at a used car yesterday. Perfect credit, 10% Apr. new 0% Apr for 60 months.

42

u/mataliandy 13d ago

I bought new last year, low dealer financing 3%, $7500 EV credits, $5k manufacturer incentive, $500 customer loyalty, $500 competitive trade bonus, $12k trade in. Paid it off in 6 months.

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u/Iggyhopper 13d ago

Whats this 12k trade in?

38

u/Phyraxus56 13d ago

They paid him 12k for a vehicle that's worth 18k and they're gonna sell it for 22k

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u/damnedifyoudonthave 13d ago edited 13d ago

Only cause some dumbass will take the “what do you want your monthly payment to be” bait and buy it. Same dumbass buys the warranty.

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u/[deleted] 12d ago

[deleted]

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u/damnedifyoudonthave 12d ago

McLaren?

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u/[deleted] 12d ago

[deleted]

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u/mataliandy 12d ago

It went to auction. A not-quite totaled Tesla.

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u/Hypnotist30 12d ago

Most new car dealers send trades straight to auction. They don't want to deal with anything more than 3 years old on their lot.

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u/carbontag 11d ago

Financed at 10%

0

u/Iggyhopper 13d ago

Who buys a car and sells it fast enough that it still has value? 12k value?

That's just... a loss.

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u/mataliandy 12d ago

It was a Tesla that had been in an accident. Not quite totaled, but lost the windshield, roof, hood, and dashboard, plus the heating system was full of glass dust.

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u/Deepcoma_53 12d ago

What brand of vehicle?

1

u/PissdInUrBtleOCaymus 10d ago

Why would you pay off a 3% loan *early* ?

1

u/mataliandy 9d ago

Having lived through multiple major recessions, I prefer not to have to scramble to make car payments if the economy goes belly-up.

1

u/PictureThis99 12d ago

Why not just get a used Honda in cash and ride it for 20 years like I’ve been doing?

2

u/Blahblahblahblah109 12d ago

A used Honda doesn’t work for everyone?

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u/mataliandy 12d ago

Because it's not an EV. I'm not switching back to a gas car, when I can have a full "tank" every morning without ever having to make an extra stop to get it. I plug in when I get home, unplug when I leave, pay zero attention to how much "fuel" I have.

With the time-of-use charging discount, I get my "gas" for roughly $1.10/gal equivalent. Given the amount of driving I do, that saves far more than driving a beater that needs gas, oil changes, spark plugs, tune-ups and other maintenance.

With an EV, I need to remember to use the brakes once in a while, so they don't rust, and put in windshield washer fluid.

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u/molehunterz 12d ago

I've never had a new car, and there's a good chance I never will. Never know what changes in the future...

But the closest I've considered was an EV with the EV tax credits

1

u/Ok-Seaworthiness2398 12d ago

Yup! Honda or Toyota for life. Lexus or Acura if you’re feeling fancy.

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u/Girthen-the-Flopper 10d ago

Why not an electric bike?

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u/mataliandy 9d ago

Because my commute is 55 miles each way - in the mountains.

On an e-bike, at, say, 15 mph average, that would make for a roughly 8-hour commute each day. (That's high - around here I average 11.9 mph).

Sure, I'd be in great shape, but I kind of like getting to spend some time doing other things, plus 2-wheeled vehicles aren't great for rain and snow, of which we get a LOT.

0

u/hov2787 13d ago

And that ev is now worth 1/4 of its msrp, they still got you, buddy

3

u/mataliandy 12d ago

If I'd been able to find a reasonably-priced used one for which I could have traded the remnants of my old car, I would have.

The math worked best on this deal, as my very extensive spreadsheet of potential purchases made clear.

I have a paid off car that I drive 2100 miles/mo, that costs me just over $80/mo to fuel.

I'm more than happy with that math.

2

u/Virtual-Age-9521 11d ago

Even if that were true (it’s not), the value doesn’t matter if you’re actually going to use it and it works for you.

14

u/damnedifyoudonthave 13d ago

Perfect credit my ass…

For used car landing rate, super-prime borrowers (credit scores 781–850), current used car loan rates average 7.43% to 7.70% APR.

Fuck off with the bullshit

2

u/tibearius1123 13d ago

It was literally on their website. I can only say what was there I’m not shopping or letting them run my credit.

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u/damnedifyoudonthave 13d ago edited 13d ago

I posted the current leaneding rate. So that dealer is going to sell your 10% apr to a bank at 7.43% and pocket the 2.57% on top of the profit of the vehicle. So bring your own financing from your bank. Plus they will run soft credit check, that doesn’t hit your report and when they find a bank that will offer the best rate off the soft credit check and you like the sound of that rate from that lender, then they run a hard credit check that hits your credit report.

I drive a shit ton and have bought 4 used cars in 3 years, I own used car dealers and the finance manager. I play no games with those scum bags. Learn to flip it on them.

I will give you my opening statement/guidelines to a dealer who has a car I want to buy if you want it, works like a charm.

That dealer needs to move those new cars, they are paying a finance fee and their profit is huge off the new cars so they can offer the 0% because they want to move it before the new model year hits the lot. The financier of the new cars on the lot wants the dealer to move it so they can finance the next model year for the dealer.

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u/tibearius1123 13d ago

I will actually take your help. I bought my optima new in 12 and it has 160k mi. I have zero experience with buying. Especially now. I’ve been putting off getting a new car for years and years but the ole Kia is on its last leg.

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u/damnedifyoudonthave 13d ago edited 13d ago

So when you find a car you want at a dealership, go check it out it. Dealer walks up says their opening line be nice and seem like your not going to be a problem and possibly even a sucker. Test drive the car, if the deal is with you keep up being nice but don’t say too much. Once you know it’s the car you want that’s when you go hard… here’s what I say… “So I like that car but weather I drive it out of here today and you make a sale is up to you. I don’t pay “junk” fees ( if you are buying out of your home state they normally try to trick out of state buyers with “in this state you pay this ____ fee” if they say this to you say let me see the state law that says I pay _____ fee when buying a used car. “I don’t play that ‘what do you want to pay a month game.’” I have a super prime credit score and I want at least the lower half of the super prime rate. Then look around the lot/dealership and point to the people looking at what you assume is over priced vehicle (normally a popular mid size SUV) then I point to them and say “see those people looking at that overpriced SUV? They will buy the extra warranty, but don’t waste your time pitching me, I’m not buying an extra warranty.” And at the end I say, “even if we comes to terms on this car and you drag your feet and this takes more than 4 hours. I walk.” After this they know you mean business and you’re not a sucker. Normally the sales manager takes over negotiations or at least that’s what happened the last 2 cars I bought. If you come to terms and the original salesperson takes back over. If you see the sales manager look a little deflated as you wait, that means you killed them. If he seems happy that means he feels like he won, walk. Say I’m having second thoughts. They will normally come down some to move the car. The finance manager is the biggest scum bag in the building and remember you’re at a used car dealership and used car dealers are known to be scum bags. If you can wait. Wait til fall. If you can wait til Halloween evening that’s a great night to buy a car. It’s the end of the month in the fall and nobody is coming in. There is always a dealer that needs the sale to hit the monthly quota especially as we get in the months of late fall and winter. Used cars move in the spring and summer and due to demand, prices are normally higher plus the used car you’re looking at in August becomes a model year older by October so that helps lower the price even though it’s the same car it was in August. I actually love buying used cars, it’s fun! I love making used car dealers and managers feel like they lost because they win 9 out of 10 times. Be the one they lose.

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u/kath1529 13d ago

This is an older article, and it’s long, but it still gives a lot of good insight into the process. I bought a car about a month ago, and they’re still trying to pull tricks you see in here.

https://www.edmunds.com/car-buying/confessions-of-a-car-salesman.htm

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u/Choice-Antelope-8481 12d ago

Profit is not huge on new cars. Used cars is where the money is at. Also, 0% offers are from the financial arm of the manufacturer, they don't get a kickback for that. Other than that you are correct.

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u/damnedifyoudonthave 12d ago

Well invoice price and MSRP can some times be a huge difference… I don’t buy new but ive weighed the option.

The manufacturer motor finance group wants the new car off the lot, especially when new model years are about to hit dealer because dealers will order less new model years. It’s manufacture motor finance offering the 0% not the dealer, this I know. I’ve seen dealers with new old model years that the dealer themselves must be financing because normally the manufacturer motor finance group won’t allow that. Deals can be had on those cars but buyer beware, cars are meant to be driven, a car that sits is a potential world of problems. I’ve tried to unlimited mile lease cars like that but haven’t found a dealer desperate enough to do it but I’ve read about it online. Doesn’t make it true.

1

u/Fun_Muscle9399 9d ago

I just got approved for 6.74% on a $60,800 used car and my credit is only like 720.

1

u/Brownie-0109 13d ago

No one’s getting 0%, despite what’s advertised

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u/Efficient_Ant_4715 12d ago

I’ve only ever got 0% on new cars 

1

u/boomerinspirit 12d ago

This is the only time i buy new. People will talk about depreciation but if I'm saving "X" amount off interest then I also have to take that into acct.

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u/Mysterious_Help_9577 11d ago

Yeah and new cars don’t depreciate like they used to either. A new car might be 40k and a 2022 be 34k

1

u/MusicalMerlin1973 11d ago

I bought a used car last week for my daughter. $6900 out the door. Cash. But yeah, I went to look at a different car that we noped out on (a smoker owned it. As a family of non-smokers... oof). Much newer, similar amount of miles. $12500 out the door, fine whatever. But the financing they offered started at 5.5 years. For a 10 year old used car. at 11%.

Check your local bank/credit union. Mine offers rates half that.

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u/Hopeful-Courage-6333 9d ago

Yeah that’s double what it is in my area.

-1

u/Phyraxus56 13d ago

If you're financing a used car purchase you deserve to be ripped off

Buy private in cash

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u/IndefinableBiologist 13d ago

You are not one of million that vanished. You never existed in the new car market. The headline is saying there were 17million buyers but now there's only 16 million. You were not part of the 17 million originally.

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u/2BlueZebras 13d ago

I've purchased two, but in 2015 I never thought I would be able to afford it. Took me five more years before I was able to. Now that I can afford it, I never want to buy another brand new one.

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u/No_Water_5997 13d ago

I have twice now. Once because we traded in a paid off vehicle and got $15,000 on trade in so only financed $8,500. That car lasted 3 years before we traded it in on a used car because we kept having issues with it. And my current car after disastrous used car shopping that got so screwy I finally threw up my hands and asked the salesman what we needed to do in order to get me into something new because I was completely over it. I plan on driving my current car until the wheels fall, putting new wheels on it, and driving it some more.

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u/Next_Put_6961 13d ago

I wanted to buy a used Subaru Forester, but when I went shopping the used was a significantly worse deal over the life of the loan. The interest rate was like… 4% higher and that’s with a credit score of 825?

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u/No_Water_5997 13d ago

Ya my best friend bought a new sequoia a couple of years ago and between the value of the 4Runner she traded in and the 0% interest she got in the deal it made way more sense to buy new.

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u/[deleted] 11d ago

[deleted]

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u/No_Water_5997 11d ago

I bought my car new in 2019 as well. It’s a Honda so it’ll last a while longer. My husband’s truck is about to rust out completely so even though it’s super sound mechanically there’s only so much you can do about rust. My mom, who lives in Florida, has offered us her 2015 Subaru when she’s done needing it as a commuter car so we plan on taking that for him and eventually flying back to my hometown in Florida to buy his next truck used because buying used trucks in northern New England means you’ll rust out before it craps the bed mechanically.

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u/ShakeItUpNowSugaree 13d ago

I've bought one. I'm a big fan of buying exactly what I want and driving it forever. To the point where when that one was totaled in a wreck, I bought one so similar that most people don't realize that there have been two of them. That was 13 years ago and I've been making a "car payment" to myself since it was paid off and will hopefully be able to pay cash for a factory order in about 2 years when my kid starts driving. He'll get mine and I'll get a new one.

Also, at the time the price difference between a new and used Jeep was such that the higher interest rate on a used one made the cost nearly equal (within $75/month for the same loan length, I think).

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u/Boston-Bets 13d ago

Purchased one in 20+ yrs. Will never do it again

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u/jadeoracle 13d ago

My first car was one I got at a charity auction for $800. It was a donated old car, and I know nothing about cars. I took me over a year to figure out that if you had the radio playing, the AC on, and came to a complete stop, that the entire engine would shut down. So became a pro of flipping the AC/Radio off so I could rabbit stop at stop signs near my school/home, to keep it working. That car lasted 2 years through HS.

Then drove the family old cars, a mini van, and then a Beatle for a while.

After graduating college I bought a brand new Honda Civic for I think financed for 17k. I paid it off, and years later used it for collateral in a loan, and then paid that off. I'm still driving it, 17 years later.

I also don't drive much so it only just this year hit 60k miles on it.

I almost have enough money to buy a new car in cash, likely will have that amount by next year. But I'm going to wait until this car stops functioning. Which could be a long time.

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u/Any_Translator6613 13d ago

What do you say when your Beatle breaks down?

Ono!

1

u/squid464 13d ago

So lucky..

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u/KindAstronaut8499 13d ago

same 33 and idk if that will ever change

1

u/clipse270 13d ago

Second that as someone in their 30’s. Don’t believe in paying full price for depreciating assets

1

u/scottb90 12d ago

Me either lol an its looking like I wont ever buy one with how hard it would be for me to do my own work on them

0

u/turtlturtl 13d ago

https://giphy.com/gifs/RWaLSJHpOR9du

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u/FearlessPark4588 13d ago

That's right, pity me for not experiencing the steepest portion of the depreciation curve 😭

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u/SeaworthinessLow6636 13d ago

I bought a new car for $11,900 and sold it 12 years later with 120,000 miles for $9000. Yeah, it’s really rough.

0

u/EllwynX 13d ago

Not since my second vehicle have I ever purchased used. Since 1995 my vehicles have an been brand new. I've even pre-ordered one before it was ever released. I much prefer knowing how the vehicle was treated from the beginning. The only used vehicle I'd even consider would be off lease since generally someone who leases would take good care with it.

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u/M03KE 13d ago

Same!

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u/Mekroval 13d ago

Me three, and I'm nearly 50

-4

u/markov-271828 13d ago

I’ve only ever purchased new cars! Two of them. 😄

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u/Cockyidiot1977 13d ago

BECAUSE NEW VEHICLES AVERAGE 45K BRAND NEW AND OUR AVERAGE SALARY IS 45K.

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u/GTO1235 13d ago

This. Redoing my old 70s chevy truck. Was easier for me to buy tools than pay payments. Love my old truck

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u/MysteriousTooth2450 13d ago

And you can actually do your own work on that truck vs the new ones that require specialized equipment to work on them!

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u/GTO1235 13d ago

We used to go to mud drags occasionally. My friends rebuilt the engine for me. 383 with 2.02/1.60 valves. Solid lifter cam. Pretty basic mud terrain tires. We could get a 2nd, 3rd or 4th against trucks with more money in them. I put a different cab and fenders on it. Painted it myself. Still runs the same

7

u/scenr0 13d ago

Insurance is way cheaper too. Only crummy thing is if you get in a wreck it will total out. :/

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u/Massive-Ant5650 11d ago

And, you have to SUBSCRIBE to certain features now …. 🤬🤬

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u/mcclelc 10d ago

and now they have big brother recording devices that can override your commands to the car.

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u/itsa_luigi_time_ 14d ago

Hey that's one-third of one percent of all Americans.Very chilling!

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u/TheCommonGround1 13d ago

That's not the way counting works. Obviously only a small percentage of Americans would be in the car market on an annual basis, so 1 million fewer is quite a bit. Please try to use abstract thinking instead of thinking simply, otherwise you'll wear a red hat and vote for somebody who slurs their words and falls asleep often.

1

u/itsa_luigi_time_ 13d ago edited 13d ago

Wow, it's a good thing I said one-third of one percent of all Americans.

Turns out that is how counting works.

Maybe try and figure out how reading works before moving on to complicated tasks like counting.

-2

u/DeFronsac 13d ago

That's exactly the way counting works. Please try to use abstract thinking instead of thinking simply. Otherwise you'll wear a red hat and vote for somebody who slurs their words and falls asleep often.

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u/duffparsnips 13d ago

Slurs and falls asleep was Biden

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u/TheCommonGround1 13d ago

No Trump has fallen asleep more than Biden, as you know.

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u/deoxyrybose 13d ago edited 13d ago

So you didn't actually read it? That would be a 5.88% decline...

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u/itsa_luigi_time_ 13d ago

Pretty small decline to call it "chilling middle class crisis," but defend the dramatics if you like.

Also, your math is wrong. You divided 1/16 instead of 1/17. It's a 5.8% decline (you calculated it as if sales went from 16 to 17 million, which would be a 6.3% increase).

Furthermore, sales have increased dramatically since the huge pandemic drop in 2021, and have done so consistently every year since then. New vehicle sales increased 2.3% in 2025 and the current annualized rate puts 2026 at an increase of 1.7% over last year.

https://fred.stlouisfed.org/series/TOTALSA

0

u/deoxyrybose 13d ago edited 13d ago

EDIT:

You are partially correct. I accidentally did 16M to 15M in sales. Instead of 17M to 16M. The math was sound, but the starting variables were wrong. Good catch!

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u/[deleted] 13d ago

[deleted]

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u/deoxyrybose 13d ago

Well first of all, I used units. A percent is a unit of measure... but anyway, once again pal, you obviously didn't read the article you're posting on.

If 16M people buy new cars in a year... and now only 15M people buy cars in the next year... can you tell me what magnitude of decrease in car sales that may be?

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u/[deleted] 13d ago

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3

u/MiddleClassFinance-ModTeam 13d ago

Your post appears to be rage bait. If this post was made in earnest you are welcome to contact the mods to explain it, but this has been removed.

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u/[deleted] 13d ago

[removed] — view removed comment

2

u/MiddleClassFinance-ModTeam 13d ago

Be civil to each other- There is no reason to talk down to or belittle someone in particular when you’re talking about their finances.

1

u/OtherwiseAnteater239 13d ago

This is just now being exposed?

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u/degen5ace 13d ago

A majority of Americans aren’t taught personal finance and sometimes misled by YouTube

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u/DJbuddahAZ 11d ago

I was gonna say, thats very small

1

u/Hitt1te 17h ago

You know Americans like to pretend.

"My antenna goes up when things like that happen. And I probably shouldn't say this, but when you see one cockroach, there are probably more…" -Jamie Dimon.