What period of time do you think of when you hear “worst car sales”? The Great Recession in 2009? Maybe the pandemic in 2020, when nobody was really driving anywhere? While these years definitely saw a decline in sales, the worst year on record since the 1960s is actually 1982. Only 7,978,487 cars were sold in the United States that year, but domestic automakers had hope going into 1983 due to an increase in sales by December. 

All of the major domestic automakers struggled in 1982, with General Motors down 7.4% from 1981, Ford down 2.5%, Chrysler down 5.2%, and Volkswagen of America down a whopping 43.7%. The sales slump was largely due to a recession that significantly reduced spending. Many Americans were unemployed or not making enough to deal with rising car prices — they had gone up 33% since 1979, with GM even reporting a $500 average increase on its models going into 1982 — and high interest rates. Automakers ran into a problem similar to the one seen today: everyday Americans couldn’t buy cars, but rich people could. 

The recession saw a lot of blue-collar workers get laid off in 1982, but higher-income professionals didn’t really feel the impact. Americans with less buying power couldn’t even afford smaller economy cars, which saw these vehicle sales decline. Meanwhile, Mercedes-Benz, BMW, Volvo, Jaguar, and other luxury brands saw increased sales in 1982. “There’s no question that the rich folks haven’t been hurt,” said Merrill Lynch Vice President Harvey Heinbach to the New York Times in 1983. ”Those people who did not have to worry about losing their job situation went ahead and spent. But the unemployment put a scare in a lot of others.” 

This is similar to how sales in the automotive industry have been over the past few years. As vehicle prices rise due to tariffs and inflation, it’s estimated that families need an income of $100,000 to afford a new car at this point. Used car prices have also continued to rise. Luxury brand BMW saw a sales increase in 2025, while brands like Mazda reported decreases, as rising prices put their commuter cars out of reach for many Americans. On top of that, rising interest rates and insurance prices make it nearly impossible for some families to keep up with the cost of ownership. Still, some experts say 2026 is a good time to buy a new car — if you shop smart.