At the end of September, the average cost of a new car in America was 6.1% higher than it had been the previous year, in part because of inflation. The fact that Americans are choosing more expensive cars, though, is another factor driving costs to new heights. Nearly 18% of September’s sales of new cars were luxury vehicles. That is more than 5% greater than a decade ago and almost 3% higher than two years ago.
Only twice, between December 2021 and June 2022, is a higher proportion visible. SUV sales are at an all-time high, reflecting a shift in consumer preferences for vehicles. Together with full-size pickup trucks, compact and midsize SUVs make for roughly half of all new vehicle sales. Here is how the US market for luxury vehicles has developed over the past ten years:
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