Edmunds has released a new survey showing many car buyers are looking to cut back on their next vehicle. As new and used vehicle prices continue to drop following their peak in December of 2022, buyers are nonetheless looking for cheaper options and lower interest rates.
The report found that nearly 73% of buyers have held off on buying a new vehicle due to continued elevated prices. Buyers are often taking on more working hours to help offset the high prices of vehicles as many look to get into a cheaper automobile. Nearly 48% of those surveyed by Edmunds were looking for cars under $35,000 and just under 15% were looking to spend under $20,000.
Other concerns for buyers include high interest rates, as nearly 75% of buyers were looking for a vehicle between 0.1% and a 6% interest rate. While the market continues to push consumers into more expensive vehicles, many are now feeling the effects with more than 50% of buyers putting off other expenses to help afford their current vehicle and nearly 15% offsetting basic monthly expenses to keep their current vehicles.
Around 65% of those surveyed noted that their current vehicle is more challenging to afford than their previous one. This continues to push many buyers into older vehicles or selecting a different-sized vehicle than they would typically drive.
This offers many aftermarket shops the opportunity to up-fit and restyle older cars to offer modern conveniences without the high prices offered from major manufacturers and dealers. Read the full report from Edmunds here.
