Car dealers say the U.S. economy is the biggest factor holding back auto sales, according to new data released on March 3 by Cox Automotive.
The data shows that 52% of car dealers said the economy is providing a drag on auto sales in the first quarter of 2026, up from 45% in the same period in 2025.
The only other factor in the survey that topped 35% was market conditions, which 37% of dealers said was a problem.
The finding comes after a recent poll from the Washington Post and ABC News said that 74% of Americans think buying a new car is unaffordable.
The average price of a new car reached $49,191 in January 2026, according to Kelley Blue Book. The group is expected to soon report new data for February’s average car prices.
Carmakers are projected to sell 1.19 million vehicles in February 2026, down 3.4% from last February, according to Cox.
How much are average car payments?
The average monthly payment on a financed new car reached a record $772 in the fourth quarter of 2025, according to Edmunds. That figure was compared to $754 in third quarter of 2025 and $754 in fourth quarter of 2024.
The group said the share of new-car buyers committing to monthly payments of $1,000 or more also reached a record high of 20.3% in the fourth quarter of 2025. That was up from 19.1% in the third quarter of 2025 and 18.9% in the fourth quarter of 2024.
“Faced with persistently high vehicle prices and borrowing costs, many consumers were forced to adapt by financing larger amounts, stretching loan terms and, increasingly, taking on four-figure monthly payments,” Ivan Drury, Edmunds’ director of insights, said in a statement.
Entering 2026, Drury said “new-vehicle prices remain high but are beginning to stabilize, lower interest rates could offer some relief for both new- and used-vehicle shoppers, and an increase in off-lease returns is expected to provide more affordable alternatives in the used market.”
What are the most expensive cars?
The most expensive car brand in January, the most recent data available, was Porsche, which had an average sales price of $128,761.
Here’s the rest of the top five most expensive car brands so far this year:
- Land Rover: $101,554
- Cadillac: $83,667
- Mercedes-Benz: $76,410
- BMW: $73,653
This article originally appeared on USA TODAY: Car dealers say the economy is hurting sales. Buyers say it’s prices.
Reporting by Keith Laing, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect