Car affordability concerns won’t go away anytime soon, data shows

foxbusiness.com:

FOX Business’ Jeff Flock reports on the latest news emerging from the auto industry as data reveals insurance prices have surged year-over-year.

The cost of owning a vehicle in the U.S. has soared over the past few years, and data indicates Americans are likely to be hit with even more sticker shock.

A recent report from auto shopping guide Edmunds points to a notable disconnect between what car buyers plan to spend on their next vehicle versus the average prices for new and used vehicles on dealership lots today.

New data from Edmunds shows there is a disconnect between what consumers expect to pay for a new vehicle and the average sticker price today. (Scott Olson/Getty Images / Getty Images)

Edmunds found that 73% of consumers report that they have held off purchasing their next vehicle because of elevated prices, which have surged since the pandemic due to supply chain issues and low inventory. 

Nearly half of new car shoppers (48%) surveyed in the study said they would like to spend $35,000 or less on their next vehicle, and 14% said they’d like to spend $20,000 or less.

HOW DO CONSUMER PRICES COMPARE IN THE BIDEN ERA WITH THE TRUMP ERA 4 YEARS AGO?

However, Edmunds data shows the average transaction price for a new vehicle was $47,716 in July, and there were nearly zero new auto transactions under the $20,000 mark.

Prospective car buyers can also expect an unpleasant surprise in financing for their next ride.

Data from Edmunds indicates prospective car buyers might get sticker shock both from price tags and interest rates. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

The report found three out of four used car shoppers are targeting an interest rate between 0 and 5%, but six out of 10 car buyers