A new analysis from Cox Automotive suggests the affordability challenges facing new-vehicle buyers are being driven by broader economic pressures, not simply the price of a vehicle.
In an article published following the company’s 2026 Mid-Year Review, Cox Automotive said the average new-vehicle transaction price in the U.S. remains around US$50,000. But the company said that figure alone does not fully explain why consumers feel increasingly priced out of the market.
According to Cox Automotive, average transaction prices reflect the mix of vehicles consumers choose to buy rather than dealership pricing alone. The company said higher-income households now account for a larger share of new-vehicle buyers, while many consumers continue to choose higher trims equipped with advanced safety, connectivity and driver-assistance features.
Jeremy Robb, Cox Automotive’s chief economist, said the broader affordability issue stems from declining household purchasing power as costs for housing, groceries, insurance, energy and other essentials have risen faster than incomes.
The analysis also notes that many vehicles have become significantly more capable over the past decade without comparable price increases once inflation is taken into account. Using the Honda CR-V as an example, Cox said its average transaction price has risen by roughly US$11,000 since 2016, but inflation-adjusted pricing has remained relatively stable despite substantial gains in technology, safety and performance.
While the analysis focuses on the U.S. market, many of the same affordability pressures are familiar to Canadian dealers. Higher borrowing costs, rising insurance premiums and increased household expenses continue to weigh on consumers, even as new-vehicle inventories have improved.
The report suggests affordability is being shaped by broader economic conditions as much as by vehicle prices themselves.
