The U.S. auto market is facing a growing affordability challenge that could also impact fleet buyers. According to industry data reviewed by Reuters, automakers are offering fewer lower-priced models while focusing more on larger, higher-end vehicles. This shift has pushed the average price of a new vehicle in the U.S. to about $47,000.

Data from J.D. Power shows the average transaction price for a new vehicle has increased about 40% since 2018. Research from Edmunds also shows fewer budget-friendly models are available today compared with a decade ago. Many automakers have reduced or eliminated smaller vehicles in favor of trucks and SUVs that deliver higher profit margins.

For fleet operators, the trend toward more expensive vehicles can increase acquisition costs and make it harder to find affordable entry-level options. The shift may also push some organizations to extend vehicle replacement cycles or rely more on the used market.

At the same time, automakers say they are working to address affordability. General Motors points to entry-level SUVs like the Chevrolet Trax, while Ford Motor Company plans to offer several vehicles under $40,000 later this decade. Stellantis has also introduced price cuts and added value to some Jeep models as it works to attract more cost-conscious buyers.