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.
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.
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).
