May 7, 2026
New data from Ford, Nissan and Hyundai shows that automakers’ business plans and buyer’s preferences seem to be out of sync.
As CNBC reports, with average new vehicle prices nearing $50,000, more customers are choosing to buy base models and lower-cost vehicles to keep costs down (1). Amelia Dalgaard, founder of the automotive advice site Motorhead Mama, says today’s car buyers are focusing on basic essentials and not fancy technology.
Advertisement
Buyers “just want something to get them from A to B, and they don’t want to pay a lot of money,” Dalgaard told CNBC. “Consumers are wising up to the fact that they don’t need all the technology… they’re not going to pay for something they don’t need.”
But at the same time, automakers seem to be focusing on more expensive offerings, possibly because of the potential for higher profit margins. In 2025, only 26 car models had average prices under $30,000. Compare that to May 2015, when the average price of a new car was as low as $32,825.
That disconnect, however, might not be the only reason for consumer frugality. Here are the two financial fears that are occupying the minds of drivers and potential car buyers.
Jobs and future mortgages
Dalgaard says that many Americans — particularly young people— are trying to make budget-conscious decisions around car loans.
“They’re concerned that they won’t be able to afford buying a house, job insecurity is real, and the last thing people want is to be saddled with a big loan,” she said (1).
According to the American Psychological Association’s 2025 Work in America survey, the majority of U.S. workers say job insecurity is causing them stress, and 44% of workers worry that a future recession or economic downturn would result in them losing their jobs (2).
That survey was taken in March and April of 2025, when unemployment hovered around 4.2 (3). In March 2026, the unemployment rate was around the same at 4.3%. A number of recent high-profile layoffs from companies like Meta, Coinbase, and Amazon might also be stoking fears (4).
Meanwhile, aspiring homeowners might feel pressure to buy quickly; over 55% of Americans think that home prices will rise in the next year, and 45% cite rising home prices as their biggest worry.
Advertisement
Between buying a home, dealing with high inflation and general concerns for job security and the economy, many Americans don’t have a lot of extra financial room in their budgets for an expensive car loan.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Running out of money
One financial fear that many Americans worry about is running out of money in retirement. In fact, a 2026 survey found that 67% of U.S. adults over 25 are more worried about running out of money than dying, USA Today reports (5).
Survey participants cite concerns about inflation, steep healthcare costs and general economic volatility as reasons for their fears. The majority worry about their retirement accounts when there’s a market drop, and over a third of participants say they withdraw funds from investments during a market downturn.
If you’re worried about running out of cash in retirement, try not to withdraw funds during a market drop, especially if you’re well away from retirement age. Giving the market time to recover will help prevent you from losing out on valuable retirement money.
You might even think about boosting your retirement contributions if you haven’t already hit the maximum annual limit. That could help assuage fears of not having enough money later in life.
If you don’t have one already, you can also create a budget that you check in on at least once a month. This will give you an idea of what you’re spending your money on and can help with keeping your spending in check. If you already have a budget, you might want to revisit it to make sure it’s still working for you.
If you’re worried about job loss, you might want to grow your emergency fund past the typical three to six months’ worth of expenses that experts generally recommend, especially if you’re in a field that’s dealing with mass layoffs.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNBC (1); American Psychological Association (2); U.S. Bureau of Labor Statistics (3); Business Insider (4); USA Today (5).
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Kit Pulliam is a DC-based financial journalist with over five years of experience writing, editing, and fact-checking financial content.
