Read our full analysis for a more in-depth look at these trends.
Autos: In gear, but the “K” is still in the headlights
Auto sales remain resilient despite higher fuel costs, but higher-income households are still driving demand.
August 2026
Key takeaways
- New vehicle sales have held up well, despite higher gasoline prices. While there was a slight pullback in July, the current level of auto sales remains above the 2025 average. Improved fuel efficiency and the historically loose relationship between gas prices and vehicle purchases likely explain some of this resilience.
- But demand has also been supported by higher-income households, which account for a disproportionate share of new and used vehicle purchases, according to Bank of America internal data on auto loan originations and loan repayments.
- Will the closing of the “K” in credit and debit card spending also be reflected in auto sales? Possibly, but affordability remains a challenge for lower-income households and, in our view, it will take some time for these consumers to regain the confidence to make the large outlays required for a new or used vehicle.
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