Nearly one million potential new car buyers are leaving the new car market, according to data from the Wall Street Journal.
Americans are going to have an incredibly difficult time buying a new car in 2026. Yahoo Finance says the US auto market “posted its eighth consecutive monthly decline”. A perfect storm of factors is causing the cost of new car ownership to skyrocket and drive many American drivers out of the market altogether.
That’s why many potential new car buyers are procrastinating when it comes to finding a good deal in 2026.
Why are American drivers being priced out of the new car market?
According to Kelley Blue Book, the average transaction price of a new vehicle in April was $49,461. New car prices are up 1.8% year-on-year. Car tariffs have sent the new and used car markets into a frenzy. In addition to high new car prices, drivers are also struggling with historically high gas prices, driving up ownership costs.
The rising cost of ownership is prompting American drivers to look to alternative powertrain options and used models rather than new internal combustion engine vehicles.
Used hybrid and electric vehicles are attracting drivers who want to save money on gas. With light depreciation and low mileage, models like the used RAV4 Hybrid and Toyota Camry Hybrid offer serious value to consumers.
High interest rates on monthly car payments are also forcing American drivers to consider alternative options to vehicle ownership. Consumers are showing renewed interest in sedans as the car models are generally more economical and efficient than larger SUVs and truck models.
What are American drivers buying in 2026?
New vehicle sales data from Motor1 proves that sales of popular truck and SUV models in the US remain steady despite high starting prices, record gas prices and high interest rates.
Best selling vehicles so far in 2026:
- Tesla Model Y: 78,591 (estimated units)
- Ram Truck: 98,425 units
- Honda CR-V: 99,437 units
- Chevrolet Silverado: 126,139 units
- Ford F-Series: 157,841 units
New car sales may be down, but consumer behavior hasn’t changed dramatically in 2026. The biggest change in new vehicle sales in recent years has been the impact of Tesla EVs such as the Tesla Model Y small SUV and the Tesla Model 3 small car.
Can you buy an affordable new car in 2026?
The prices of new cars have increased, but there are still affordable car brands in the market. Hyundai, Chevrolet, Kia, Nissan and other brands are creating new car models with starting prices below $24,000.
If you want to save money on gas, there are also several affordable hybrid cars on the market, including the 2026 Honda Civic Hybrid ($29,395) and the 2026 Toyota Camry ($29,300). We tested the new Camry in late 2025 and found it to be exceptional value.
Finding the perfect new car deal in 2026 is tough, but there are still affordable, practical and efficient new models that are worth the money if you know where to look.
USA TODAY Network via Reuters Connect