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US Car Sales End 2025 With A Bang!
In a twist that few saw coming, the US automotive industry shows why it's incredibly resilient.
Issue #178
2025 has ended, and there was no shortage of surprises. Now, we look back at one of the most shocking of all: car sales.
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Market News
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Car Culture
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Video Of The Week
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In The Know
The US automotive industry closes 2025 with a surprise
What a year, huh?
2025 was one of the most challenging years for the automotive industry as of late. What began as a hypothetical discussion of how tariffs would affect the market became a rollercoaster of positives and negatives.
The initial prediction was that auto sales would close at around 15.6 million cars, well below the originally expected 16 million.
As we look back at the year, and with automakers reporting their final stats, we can safely say that 2025 doesn’t stop amazing us.
The US automotive industry defied regulatory uncertainty and ended the year on a high note. Despite everything, sales grew by 2.4%.
As this article explains, that’s a total of 16.2 million.
Many automakers had a great 2025. For example, even though GM didn’t necessarily close the year with a bang, its sales went up 5.5%. What’s more impressive is that very few of the entire GM lineup models actually dropped in sales, as you can read here.
However, there’s a catch, and it’s something that has some experts worried, because it’s a reflection of how expensive the cost of living is right now. To exemplify, we’re going to use this article as an example.
Lexus is running out of inventory. Demand is so high that the company’s waiting times are growing with every passing day.
That’s great news for the company, but not for the rest of us. Lexus has great sales because wealthier people are driving auto sales. As explained here, households earning under $75,000 a year account for only 26% of new car sales.
If we look at the most popular cars per state, we can see that the Ford F-150 continues to be popular in many states.
The average Ford F-150 buyer is now paying $900 a month, and they’re not the only ones. Since lower-income families can’t buy a new car as easily, it has a direct consequence on the midterm family finances of those who need cars, but can’t afford many models, especially with car prices constantly hovering at $50,000.
This article explains how families are now extending their financing, stretching loan terms, and even taking a four-figure monthly payment.
Now, why does this matter? Because, even though the automotive industry is growing, and it’s able to overcome what might have been the most challenging year, it does so at the expense of lower-income families. At the time this happens, loan delinquency has hit a high not seen in years.
How many years?
It happened back in 2009, one year after the Great Recession. Experts continue to warn that the coming year will be a challenging one, but somehow, the industry continues to prove them wrong. The question is: for how long?
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