U.S. Auto Market Faces Wealth Disparity Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Source: CNBC
- Income Disparity: According to Cox Automotive, the share of new car buyers earning less than $100,000 dropped from 50% in 2020 to 37% last year, while those earning over $200,000 increased from 18% to 29%, indicating a shift towards affluent buyers and resulting in millions of lost sales.
- Sales Trends: New car sales in the U.S. reached 16.3 million in 2025, falling short of the pre-pandemic record of over 17 million, yet still above historical averages; however, rising average prices and insurance costs are forcing many consumers to opt for used vehicles, impacting overall market vitality.
- Affordability Crisis: A study by Plante Moran found that about one-third of the U.S. population cannot afford new vehicles, with only around 110 “affordable” models available for households earning $65,000 or less, compared to over 250 models for those earning up to $105,000, highlighting severe market imbalances.
- High Monthly Payments: CarMax's Edmunds reported that 20% of new car buyers in Q4 2022 committed to monthly payments exceeding $1,000, a record high, prompting Ford's CEO to warn that the automotive industry must be cautious about affordability issues to avoid a decline in consumer demand and future sales.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 13.65 USD with a low forecast of 11.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 13.720
Low
11.00
Averages
13.65
High
16.00
Current: 13.720
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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