Consumers' concerns about rising fuel prices and affordability may be reflected in the speed at which the cheapest cars leave dealerships.
According to the data from Edmunds, from the first quarter to the third quarter, the number of days required to sell vehicles priced between $20,000 and $29,999 decreased by 20%. The sales acceleration in this price range was the greatest among all price segments.
Vehicles with a price range of $30,000 to $39,999 sold about 18% faster; while for the next price tier, vehicles priced between $40,000 and $49,999, the number of days required to sell them decreased by nearly 12%, according to Edmunds.
The time required for these vehicles in different price ranges to be resold is also less than that of more expensive models. Models in the lower price range are sold from the dealership within 60 days, with the cheapest models selling the fastest. Meanwhile, all models priced over $50,000 take more than 60 days to sell.
"If you are a dealer and you have inventory of this model at this price point, you would definitely notice this," said Ivan Drury, the Insight Director of Edmunds.
Cheaper vehicles may sell faster, but they are still difficult to find. Cox Automotive data shows that the average listing price for new cars in September was $49,726.
Moreover, the overall sales volume in some key segments with prices below $40,000 is declining. This is particularly true for compact cars, which have seen a decrease of about 4% since the beginning of 2026; compact SUV models have seen a decline of nearly 8% during the same period, according to Cox Automotive.
These different data points seem to be moving in opposite directions. On one hand, cheaper cars are circulating more quickly from dealership lots; on the other hand, sales in the affordable market segment are declining.
Analysts tracking the industry say there are several reasons behind this. One of them might be that dealerships simply do not have a sufficient supply of low-priced models to begin with.
Cox Automotive Deputy Chief Economist Mark Strand said, "I believe there are indeed some supply-side issues at the lower end of the market. Before we see the data for the fourth quarter, we need to assess the market based on the current trends first."
Especially in the compact SUV niche market, there is an impact due to a shortage of two popular vehicle models.
Strand says that Toyota RAV4 is the most popular SUV in the United States, and supplies have been tight at many dealerships this year because the automaker is shifting production to its factory in Kentucky. At the same time, Toyota has also switched its entire product line to hybrid systems, and hybrids are in high demand currently.
Another SUV that was absent is the Ford Escape. Ford has discontinued this model to make way for the upcoming mid-size electric pickup truck.
AutoForecast Solutions Vice President of Global Forecasting, Sam Fiorani, stated that another segment of the market that sells more slowly but at lower prices – compact sedans – is facing structural inventory challenges.
He said, "Over the past decade, we have seen the disappearance of affordable and compact new cars."
Detroit automakers have replaced their compact coupe and sedan lineups with small crossover SUV, which typically come at a slightly higher price than passenger cars of similar size.
Currently, there is not a single compact passenger car from American automakers on the market. The majority of cars available in the market come from Japan or South Korea, with a few from German brands, such as Volkswagen's Jetta and Golf hatchbacks.
Fiorani said, "You will see that many brands have already withdrawn from this market."
According to AutoForecast Solutions, the smallest car models in the US passenger vehicle market include Ford Mustang, General Motors' Chevrolet Corvette, and the mid-size Tesla Model sedan. This organization classifies both Mustang and Corvette as sports cars, so they are in a different market segment from compact sedans such as Honda Civic or Toyota Corolla.
The starting price of Mustang is $33,490, the starting price of Model is $34,990 for purchases of 3 or more units, and the starting price of Chevrolet Corvette is $71,300. In contrast, the starting prices of Civic, Corolla, and Jetta are all below $25,000.
Fiorani said, "Compact car buyers are very sensitive to prices. Therefore, when oil prices rise, it puts pressure on their car loan payments. This means they can't afford a monthly car loan of $500 or $600 and have to turn to the used car market instead."
In fact, Cox Automotive data shows that the wholesale prices of compact cars have risen, and the increase has almost surpassed that of any other market segment. Wholesale prices – that is, the prices at which vehicles are sold at large auctions, such as those at the Manheim auction of Cox Automotive – serve as an indicator of the overall prices in the fragmented used car market.
As prices rise, automotive finance data also shows that a record number of buyers are struggling to afford the cost of purchasing cars.
Approximately a quarter of car buyers who purchase vehicles through loans are applying for 84-month loans, which is a record high. In the third quarter, nearly 30% of the vehicles used for trade-ins to purchase new cars had a negative net asset value, meaning that the value of the traded-in vehicles was lower than their outstanding loan balances. Car buyers tend to carry over these negative balances into the new loans, thereby increasing the cost of the new monthly payments.
Automobile companies are also aligning production more closely with demand in order to avoid discounts on vehicles. Cox Automotive states that as of October, average incentive measures accounted for about 6.6% of the average transaction price. Leasing can help consumers obtain vehicles with lower monthly payments, but the proportion of leasing is also declining.
Vehicle replacement data indicates that many of the buyers who snapped up these quickly selling, low-priced cars are first-time car purchasers, or those buying their second car, Drury said.
In the low-price niche markets where sales are expected to rise in 2026, ultra-small SUV is one of them. Fiorani states that this niche market has attracted many first-time car buyers, but overall, it still constitutes only a relatively small portion of the entire automotive market.
He said, "This is not the mainstream car model that Americans really want. It's the kind of car that entry-level buyers need for commuting to work or school... These people don't have families yet."
Drury says that repeat car buyers are unlikely to be willing to switch to smaller compact sedans or SUV.
“Once you sit in a smaller car that’s not as comfortable, that can’t fit all your belongings, nor the equipment needed for your child’s soccer training, then you won’t buy it,” he said. “You won’t give up features like 360-degree imaging, seat ventilation, and heated steering wheels that you’ve become accustomed to. Car manufacturers are aware of this, and so are dealers.”
Those who are truly short on money either rush to buy the few low-priced cars available at dealership lots, turn to the used car market, or continue to drive their current vehicles for a longer period of time.
Fiorani said, "Those who want to buy a small car are indeed being severely affected by the current economic situation. So they either turn to used cars or try to keep their existing vehicles for as long as possible. Automakers should be prepared for a softer market."
