Today, up to 1 million Americans are effectively shut out of the market for new cars and light trucks. Vehicles have simply become too expensive for many lower-income households. The average cost of a new vehicle is around $50,000, up roughly 20% from just four years ago. To compound things, used car prices are also near record highs, averaging about $32,000 for a three-year-old vehicle. What’s going on?

The long-term decline in vehicle affordability is the result of poor government policy, costly union contracts, macroeconomic pressures, and changing consumer preferences.