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U.S. Auto Market Sees Fewer Buyers as New Vehicle Prices Remain High

Additional data backs up that trend. S&P Global Mobility reported that the average age of vehicles on U.S. roads reached 12.8 years in 2025, continuing a long-term pattern of Americans holding onto cars and trucks longer. Analysts say high new- and used-vehicle prices, economic uncertainty, and improved vehicle durability are all contributing to the aging vehicle fleet.

Cox Automotive’s Kelley Blue Book also reports that new-vehicle prices remain elevated. In May 2026, the average transaction price for a new vehicle was still up from a year earlier, even though prices eased slightly from April and incentives increased. That shows the market remains expensive for many middle-class buyers, especially with auto loan rates still high.

Cox Automotive said the new-vehicle sales pace in May was near 16.1 million on a seasonally adjusted annual basis, but year-to-date sales were tracking closer to 15.7 million. That was below the 16.4 million pace from the same period one year earlier, showing that the market has improved in some areas but has not fully returned to the stronger sales levels the industry once expected.

The shift toward hybrids is also being confirmed by other industry reporting. Reuters reported that U.S. hybrid sales jumped 37% in the two months after the conflict in Iran pushed gasoline prices higher, while EV sales grew at a slower pace. Industry analysts say many buyers like hybrids because they offer better fuel economy without requiring charging stations or major changes in driving habits.

S&P Global Mobility reported the average U.S. vehicle age at 12.8 years in 2025, not quite 13 years, so I’d use “nearly 13 years” or “12.8 years” for accuracy.

Cox Automotive/Kelley Blue Book reported May 2026 new-vehicle prices were still up year over year, while Cox also said May’s sales pace was near 16.1 million SAAR and year-to-date sales were tracking below the prior year. Reuters reported the recent hybrid-sales surge tied to higher gas prices and consumer preference for familiar fuel-efficient vehicles.

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