Illustrator: Emma Roulette
The Big Take
New Cars Are Only for the Rich Now as Automakers Rake In Profits
With pandemic-era chip shortages fading, manufacturers are keeping inventories low — and prices high. The shift to EVs will make things worse.
A shiny new car in the driveway has been an emblem of middle-class prosperity for generations. But for the typical American family, it’s now a distant dream.
The average monthly payment for a new car has soared to a record $777, nearly doubling from late 2019, according to Kelley Blue Book owner Cox Automotive. That’s almost a sixth of the median after-tax income for US households. Even used models have climbed to $544 a month on average.