US Auto Sales Remain Stuck Below Pre-Pandemic Levels

U.S. car sales remain stuck below pre-pandemic levels amid a struggling auto market, according to The Wall Street Journal.

Higher borrowing costs and increased prices on new vehicles are two key factors steering consumers away from buying, according to the WSJ. Many customers have looked to lease cars to avoid out-of-pocket costs and have turned to purchasing smaller and more affordable vehicle models.

“I don’t think that people really want these teeny, tiny vehicles, but it’s what they can afford right now,” Charlie Chesbrough, Cox senior economist, told the WSJ.

The average new car sold for $44,467 last month, which was down nearly 3% from last year, the WSJ reported, citing data from J.D. Power. That figure was, however, around $34,600 at the end of 2019.

“This market is still pretty unaffordable,” Jessica Caldwell, head of insights at Edmunds, a car-shopping website, told the WSJ.

The auto industry is not the only industry facing struggles with inflated costs, as homeownership costs have also spiked since the pandemic. Additionally, many Americans are having a hard time affording to make their car payments and credit card payments as inflation elevated under the Biden administration.

The inflation rate increased