Many of the people who bought new cars in the end-of-year shopping spree in December had the wherewithal, or at least the appetite for risk, for today’s higher sticker prices as they scooped up models for upwards of $80,000.

Luxury vehicle sales tend to spike along with emotions during the holidays, though new-vehicle sales in general did well last year, reaching an estimated five-year high of nearly 16 million, according to Cox Automotive estimates.

That’s despite average transaction prices moving back up in the last four months of the year to approach the record peak set in December 2022. December’s new-vehicle ATP hit $49,740.

This is of course palatable for the well-off, even desirable due to the status benefit, hence the brisk December luxury sales. 

But for the consumer on a budget, it’s challenging if not impossible, at least if he wants to treat himself to the all-American experience of owning a brand-new vehicle, including the unique high of the new-car smell. Much sacrifice must be made, or off to the used lot.

Buying new, for many, seems a mirage. In fact, some market watchers say the compact Mitsubishi Mirage is the last new vehicle selling in the U.S. for less than $20,000. And it’s going fast, as the Japanese automaker said it would stop making the model after the 2024 year. However, others point out that the subcompact Nissan Versa sedan still starts in that rarefied price range.

New-car options are, regardless, limited for the budget-conscious consumer. Even used-vehicle values are headed back up after post-pandemic price corrections. Demand, what with new-car prices being what they are, has stayed high, and used supplies are therefore restricted.

That leaves dealers to expand their sights to other corners of the business, including finance-and-insurance products. The service drive, for one, can boost profits as people try to keep their cars on the road for as long as they can.

If a new car is a mirage for a segment of your customers, you can still help them feel good about what they can afford.