Even Some High-Income Americans Can’t Afford New Cars Anymore
Soaring prices push buyers to previously owned vehicles, as more than half of new models go to the affluent.
Marc Levine was used to leasing a new Mercedes-Benz sport utility vehicle every three years, like clockwork. He liked driving a new car and not having to worry about maintenance or running out of warranty coverage. But when he returned to his dealer last year to replace his 2018 GLE 350, he was in for a shock: For the newer version of the same model, his monthly payment would nearly double, to almost $1,200 from $640.
“Are you kidding me?” Levine, a cardiologist who lives with his family in South Florida, asked his dealer. He looked at mass-market brands—a Jeep Grand Cherokee and a Toyota Highlander—and the monthly payments on those had grown close to what he’d paid on his previous Mercedes. So finally he asked: “You got anything pre-owned?”