Wealthy Buyers Are Powering the New-Car Market, JD Power Says

At a JD Power forum ahead of the New York International Auto Show, Thomas King, president of OEM solutions at JD Power, said new-vehicle buyers have far higher median incomes, skewing the market toward wealthier consumers.

JD Power data showed the median household income for new-vehicle buyers is $153,000 versus about $85,000 for U.S. households, and JD Power noted fuel costs are 2.8 percent of household income overall but 1.5 percent for new-car buyers.

Panelists and representatives from the National Automobile Dealers Association warned the market is top-heavy and cited an 11 percent share of subprime auto loans—the highest rate since March 2016—as a vulnerability, and speakers said tariffs and other headwinds could hinder efforts by brands such as Nissan and Kia to expand sub-$30,000 options.

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