Consumers seek less complex, more affordable and practical automobiles
In the $25,000 to $35,000 price range, consumer preferences for new cars are being influenced by a combination of economic pressures, evolving expectations for value, and a renewed focus on essential features. This shift is particularly noticeable in the current market, where affordability concerns and the desire for simplicity have become key drivers.
The demand for simplicity is evident in the growing preference for core, practical features over excessive add-ons. With new vehicle prices surging, the average price of a new car now exceeding $45,000, many buyers are being pushed into the used car market or towards more basic, value-oriented new models.
To cater to this shift, dealerships and manufacturers are promoting clear, transparent pricing and simple financing options. This move is particularly important as financing conditions remain tight and tariffs add to costs.
Affordability is another significant factor shaping consumer preferences. The entry of new tariffs on imports and rising interest rates have made affordability a top concern. The $25,000–$35,000 segment is under pressure as manufacturers pass on tariff costs, and buyers struggle with higher monthly payments. Demand for vehicles under $30,000 is especially vulnerable to market slowdowns.
Trade-in values have increased, helping some buyers offset higher sticker prices. However, the affordability index remains at its worst level this year, meaning that buyers in this price range may need to compromise on features or wait longer to purchase. Some brands still have pre-tariff inventory, allowing buyers to access new cars at lower prices before tariffs fully impact the market.
Safety remains a top priority for consumers in this price range. Advanced safety features such as adaptive cruise control, lane-keeping assist, and automatic emergency braking are increasingly standard. Buyers expect these technologies as basic equipment. The focus is on value and peace of mind, with consumers wanting reassurance that their vehicle will protect them without adding unnecessary complexity or cost.
The market outlook shows a slowing of new car sales, with used car sales outperforming new. This trend is due to high prices and economic uncertainty, with the risk of sluggish sales being greatest for cars below $30,000.
In summary, consumer preferences in this price range are increasingly defined by the need for straightforward, affordable vehicles with robust safety features as economic pressures mount and new car prices climb. Both budget-conscious shoppers and those with a higher budget share a common interest in core safety technologies. The ideal vehicle for these buyers is a fuel-efficient sedan or compact SUV with cloth seats, a modest screen, manual controls, and proven safety tech. As consumers continue to feel financial pressures, manufacturers may need to rethink trim levels, offering modest base builds with optional upgrades rather than packed standard packages.
Shoppers in the home-and-garden section of online shopping platforms might also be pursuing deals-and-discounts on lifestyle products, as they too seek affordable options that offer essential features without unnecessary add-ons. Similarly, while researching new cars in the $25,000 to $35,000 price range, many are prioritizing simple features and financing over luxury extras, aligning their preferences with a broader trend towards affordability and practicality.
