U.S. auto sales are expected to decline this year as high vehicle prices push many middle-class buyers out of the new-car market, according to Bloomberg. 

Major carmakers including General Motors, Honda and Hyundai reported weaker sales in the final quarter of last year. While total U.S. vehicle sales likely topped 16 million in 2025, Cox Automotive said the annualized selling rate slowed to about 15.6 million in the fourth quarter, down more than 5% from the previous quarter.

Affordability pressures have intensified as consumers face persistent cost-of-living concerns, reduced government support for electric vehicles and new tariffs that threaten to raise prices.

Cox said new-car sales among households earning $75,000 or less annually have dropped 30% since 2019, while purchases by households earning more than $150,000 surged 45%.

More than 20% of new-car buyers took out loans with monthly payments exceeding $1,000 in the fourth quarter, a record high, according to Edmunds.

Cox forecasts U.S. auto sales of 15.8 million vehicles this year, which would mark the industry’s first annual decline since 2022.

Read more at Bloomberg.