Jaspreet Singh, founder of the Minority Mindset YouTube channel and personal finance expert, warns that the U.S. car market is fundamentally broken. Be Aware: 7 Critical Checks Before Buying a Used Car, According to Mechanics Try This: 6 Safe Accounts Proven To Grow Your Money Up To 13x Faster New vehicle prices have topped $50,000 while auto loan delinquencies reach historic highs — a troubling combination that suggests Americans can no longer afford the cars they’re buying. Here’s what you need to know. ...

Core Insights - The Trump administration is rolling back Biden-era environmental standards for vehicles, which is expected to reduce the average cost of a new car by $1,000 [1] - The average cost of a new vehicle in the U.S. has surpassed $50,000 for the first time, marking an increase of over 25% from under $40,000 five years ago [2][3] - Consumer sentiment reflects frustration with inflated prices, leading many to delay new car purchases and hold onto their current vehicles longer [2] Pricing and Financing Trends - Approximately 80% of car sales are financed, with the average monthly payment rising to $748, and nearly 20% of buyers now paying $1,000 or more monthly [3][6][7] - Auto loan rates are currently high, with new vehicle rates at 6.56% and used car rates at 11.40% as of Q3 [4] - The average APR has remained at 7% for three consecutive quarters, contributing to affordability challenges for buyers [4] Affordability Crisis - The new-car market is experiencing an affordability crisis, with buyers making smaller down payments, financing more, and opting for longer loan terms to manage monthly costs [5] - Even if vehicle prices stabilize, rising interest costs continue to strain buyers' budgets [5]