With new car prices nearing historic highs, middle-class consumers are being deterred, and these high prices threaten to slow growth in U.S. auto sales this year. Data from industry research firm Cox Automotive shows that while full-year 2025 sales are projected to exceed 16 million units, the annualized growth rate for the fourth quarter has dropped to around 15.6 million units, a decline of more than 5% from the third quarter. Charlie Chesbrough, a senior economist at Cox, said this “sharp decline” signals a lack of growth momentum heading into the new year. The core reason lies in the unease felt by consumers with annual incomes below $150,000. Pressured by the cost of living, this demographic has significantly scaled back their car-buying plans. Cox forecasts that U.S. auto sales will drop to 15.8 million units this year, marking the first annual decline for the U.S. auto industry since 2022.