President's Day has long been one of the biggest weekends for American car sales, as holiday incentives and dealership marketing attract buyers to the lot. But with the average new car price now exceeding $50,000 (Kelley Blue Book), the psychology of the "holiday sale" has shifted. How are consumers navigating this expensive landscape?
"Affordability, especially the total monthly payment, is the primary driver for consumers today," says Dr. Pnina Gershon, co-director of the Automated Vehicle Technologies (AVT) Consortium at the MIT Center for Transportation and Logistics. "Incentives work because they reduce the psychological burden of a high sticker price. Buyers aren't looking for a car because it's a holiday; they are looking for a deal that makes a long-term financial commitment feel manageable."
While price is the entry point, the technology inside the vehicle has major influence on buyers' decisions. Consumers now expect advanced safety features, such as automatic emergency braking and lane departure warnings, to be standard features rather than premium add-ons. However, there is a growing gap between having the tech and trusting it. Dr. Gershon notes, "Buyers assume core safety tech is there. What matters now is whether the driver understands it and trusts it to work in everyday driving. If the technology feels like work or creates confusion, it actually hurts brand loyalty."
This demand for simplicity extends to the current state of electric vehicle (EV) demand. While interest in EVs remains high due to lower fuel costs and environmental benefits, practical barriers like charging infrastructure and price are leading many car shoppers toward hybrids as a "middle ground." Ultimately, today’s car buyers are looking for vehicles that are honest about their technology and easy to live with.
