Why the rich are propping up car sales

Car prices are still wandering near the highest levels of all time, but one of the main reasons is that automobile manufacturers stack their squads with high -level vehicles.

According to Cox Automotive, as of August, the share of new cars sold over $ 50,000 was almost twice in 2019. There were about 33 models for sale below $ 100,000 and $ 18,000 with a recommended retail price of a manufacturer or MSRP.

Richer customers are increased with rising home values, stock market returns and positive credit, while low and medium -income buyers find themselves locked.

“Either we need a lower cost -effective alternative, or something in the financial markets that really relax the ability of these buyers to buy.” He said.

In the meantime, companies rely more on a smaller share of consumers for sale.

“If this balloon explodes, this economy has a very dramatic effects throughout the economy,” Morning Consult Chief Economist John Leer said. “Many companies focused on addressing the demand of these high -income consumers.”

Watch the video to learn more.