May. 2 at 1:17 AM
Trade negotiations in North America are increasingly intersecting with a growing affordability crisis in the auto market, where the era of “cheap cars” appears to be under pressure. Over the past few years, the average price of a new vehicle has risen by roughly
$10,000 since the pandemic, driven by a combination of supply chain disruptions, higher material and labor costs, and a shift by automakers toward higher-margin models.
On top of that, financing conditions have made ownership even more expensive. With interest rates significantly higher than pre-pandemic levels, the typical household is now paying about
$2,000 more per year in car-related payments compared to 2019. This has effectively compounded the impact of sticker-price inflation, making affordability a central issue for consumers.
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