Consumers are worried about rising fuel prices and affordability — and that can be seen in how quickly the most expensive cars move off dealer lots.
From the first quarter to the third, the number of days it took dealers to sell vehicles priced between $20,000 and $29,999 dropped 20%, according to data from Edmunds. The speed of the sale has accelerated the most in the price segment.
Vehicles priced from $30,000 to $39,999 sold about 18% faster, and the number of days to sell the next tier — $40,000 to $49,999 — dropped nearly 12%, according to Edmunds.
All of these price segments also take fewer days than their more expensive counterparts. Low-priced tiers take less than 60 days to switch, with the lowest-priced tiers selling out the fastest. Every vehicle segment above $50,000, meanwhile, takes more than 60 days to sell.
“If you’re a seller and you have inventory and a price point, you’re going to see that,” said Edmunds Director of Insights Ivan Drury.
Cheaper vehicles may sell faster, but they’re still hard to come by. The average price for a new vehicle in September was $49,726, according to Cox Automotive.
And, overall sales numbers for several key segments priced below $40,000 have declined. That’s especially true for compact cars, which are down about 4% from the start of 2026, and compact SUVs, down nearly 8% over the same period, according to Cox Automotive.
These different data points seem to be moving in opposite directions. On the one hand, cheaper cars move faster from the dealership. On the other hand, the sales of the affordable segment declined.
There are several reasons for this, according to analysts who follow the industry. One of them may not be enough low-priced vehicles in the dealer’s shop in the first place.
“I think there’s some supply going on at that end of the market,” said Cox Automotive Deputy Chief Economist Mark Strand. “We have to grade the market with the curve until we see what happens with the fourth quarter data.”
The compact SUV segment, in particular, is experiencing a shortage of two popular models.
The Toyota RAV4, which is the most popular SUV in the U.S., has been in short supply at many dealerships this year, as the automaker moved production to a Kentucky plant, Strand said. The company has also moved its entire lineup to hybrid powertrains at a time when hybrids have been in high demand.
Another missing SUV is the Ford Escape, which the automaker stopped to make way for the upcoming midsize EV pickup truck.
Another slow-selling, low-cost segment — compact cars — is facing structural inventory challenges, said AutoForecast Solutions Vice President of Global Forecasting Sam Fiorani.
“We’ve seen new affordable and compact vehicles for the past decade,” he said.
Detroit automakers are swapping out their lineup of compact coupes and sedans in favor of small crossover SUVs, which tend to carry higher sticker prices than similar-sized passenger cars.
Currently, there are no compact passenger sedans sold by American manufacturers. Most of the markets are Japanese or Korean, with some German models, such as the Volkswagen Jetta and the Golf hatchback.
“You have all these brands that just leave the market,” Fiorani said.
The smallest American passenger car is Ford mustang, General Motors‘ Chevrolet Corvette, and midsize Tesla Model 3 sedan, according to AutoForecast Solutions. The company classifies the Mustang and Corvette as sports cars, and as such they occupy a different niche than compact sedans like the Honda Civic or Toyota Corolla.
The Mustang has a starting price of $33,490, the Model 3 starts at $34,990 and the Chevrolet Corvette starts at $71,300. Cars like the Civic, Corolla and Jetta all start under $25,000.
“Compact vehicle buyers are very price sensitive,” Fiorani said. “And when gas prices go up, that eats into car payments. That means they can’t pay $500 or $600 a month for a car, and they have to go to the used market.”
Indeed, the wholesale price of compact cars has increased and more so than any other segment, according to Cox Automotive. Wholesale prices – the prices of vehicles sold at large auctions, like Cox Automotive’s Manheim auction – are an indicator of overall prices in the fragmented used car market.
Along with the increase in prices, auto finance statistics show that more and more buyers are buying cars.
About one in four buyers who finance their purchase get an 84-month loan – a record. Nearly 3 out of 10 trade-ins for new vehicle purchases carried negative equity in the third quarter, meaning the car sold for less than the loan balance. Buyers often roll those negative balances into new loans, which result in new payment fees.
Automakers have also adjusted production in response to demand not to downsize vehicles. Incentives averaged 6.6% of the average transaction price in October, according to Cox Automotive. Leasing offers a way to get a car with lower payments, but leasing rates are also falling.
Vehicle trade data shows that many buyers of vehicles that sell for less are first-time buyers or buying additional vehicles, Drury Edmunds said.
The subcompact SUV segment is one of the low-price groups that has seen sales increase in 2026. This is a segment that attracts many first-time buyers. But this is still a relatively small part of the total car market, Fiorani said.
“This is not the primary vehicle that Americans want,” he said. “These are the vehicles entry-level buyers need to get to work, go to school. … These are people who don’t have families yet.”
Repeat buyers don’t want to downgrade to a compact car or SUV, Drury said.
“The moment you get into another vehicle and it’s a bit small, it’s not comfortable, it doesn’t fit all your stuff, all the kids’ gear for soccer practice, you’re done,” he said. “You do not give up 360 cameras, ventilated seats, heated steering wheel, these are the niceties that have become accustomed to. Automakers know that very well. Dealers know.”
What really traps cash is picking up a cheap car on the dealer lot, going to the used market, or keeping the car longer.
“People who are trying to buy a smaller vehicle are really hurting because of the current economy,” Fiorani said. “So they try to move to used vehicles or try to keep their current vehicles as much as possible. Car manufacturers should be prepared for weakness in the market.”