Read our full analysis for a more in-depth look at these trends.
Autos: How much gas is left in the tank?
Auto costs are gaining speed as “buying ahead” decelerates, putting some consumers and parts of the industry under pressure.
June 2025
Key takeaways
- Auto sales rose sharply in recent months as consumers raced to beat potential price increases due to the imposition of tariffs. But the growth in Bank of America consumer vehicle loan applications has now fallen back from April's peak, suggesting that "buying ahead" has largely run its course.
- Despite the slowdown in buying ahead, lower-income and younger consumers are poised to feel the most pressure from firmer prices. Bank of America data shows the growth in median car payments since 2019 has outpaced both new and used car prices. In fact, of those households with a monthly car payment, 20% have a payment greater than $1000 a month.
- Tariffs and other policy uncertainty have also complicated electric vehicle (EV) sales. According to Bank of America data, the number of new EV loan originations in May is almost 80% below 2022 average levels. Moreover, BofA Global Research expects EV penetration rates for the next few years to be about half of their estimate from last year.
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