Auto and Motor Vehicle Wholesalers NAICS 423110

Mar 6, 2026 - Affordability a Major Drag on Auto Sales

• Car affordability has become a major drag on US auto sales heading into 2026, with 52% of dealers citing the economy as a barrier to sales in Q1 2026 - up from 45% a year prior. A Washington Post/ABC News poll found 74% of Americans consider buying a new car unaffordable, unsurprising given the average new car price was $49,191 in January 2026. Monthly payments are also at record highs, with Edmunds reporting the average financed new car payment reaching $772 in Q4 2025 and one in five buyers now committing to $1,000 or more per month, contributing to Cox's projection that February 2026 vehicle sales will fall 3.4% year-over-year. Some relief may be on the horizon through lower interest rates and more off-lease used vehicles entering the market, though luxury brands like Porsche (averaging $128,761) continue pushing overall price averages upward.
• Even with producer prices for motor vehicle and parts wholesalers up 13.09% year over year in November, the industry isn’t exactly cruising. The price jump says more about rising costs than rising demand. Tariffs, higher labor bills, and stubbornly expensive transportation are forcing wholesalers to charge more just to keep pace. Meanwhile, high interest rates are cooling vehicle sales, leaving dealers cautious about stocking inventory and trimming orders for parts. Consumers are also stretching the life of their cars, sticking to must-have repairs and skipping upgrades, which takes a bite out of parts volumes. Add in uneven auto production schedules and tighter inventory discipline from manufacturers, and wholesalers are moving less product overall. In short, prices are climbing, but volumes are shrinking — a combination that’s squeezing margins and making clear the real problem isn’t pricing power, it’s a demand slowdown.

• Automakers importing vehicles into the US are bracing for higher logistics costs after new federal port fees increased charges on foreign-built vessels. Much of the industry relies on roll-on/roll-off (Ro-Ro) ships - large carriers designed for wheeled cargo like cars, SUVs, and trucks that are driven on and off the vessel rather than lifted by cranes. With fees rising from $14 to $46 per net ton, shipping companies estimate an added $200-$300 per vehicle, a cost that ultimately pressures automakers’ pricing, margins, and import strategies. Wallenius Wilhelmsen, one of the world’s largest Ro-Ro operators, has paused its 2025 financial outlook and expects as much as $100 million in new costs this quarter alone. The uncertainty around how these fees interact with other trade measures adds further complication. If absorbed into supply chains, these increases could push automakers to adjust sourcing, renegotiate shipping contracts, or pass higher costs to consumers.
• Battery-powered cars will make up half of all US auto sales by 2039, according to a forecast by consultancy EY, a delay of five years from previous projections. The adjusted forecast reflects a changed political reality with regards to Electric Vehicles (EVs) as the Trump administration eliminated EV targets for automakers and cancelled a $7,500 consumer tax credit for buying an EV. The US now stands to fall behind other countries in the EV race, particularly China. US consumers had already been skeptical of EVs due to their high price and a lack of sufficient charging infrastructure across the country. As a result, EY expects that market penetration for EVs will stay relatively flat at 11% of US auto sales in the next four years, up from 8.1% in 2024. By contrast, EVs are forecasted to make up 70% of auto sales in China by 2039.