Minnesota’s new auto market rich with luxury models, expensive trucks

At the Twin Cities Auto show, Luxury Lane is getting longer.

Packed with the latest and most expensive models this year, the exhibit features showpieces only affordable for the mega-rich — like an $860,000 Lamborghini— plus more modestly priced but still-expensive imports like the Land Rover and Genesis.

It’s been a big draw this year, along with a new lines of Jeeps and pickup trucks, some of which carry price tags as high as a luxury sedan. Another higher-end addition to the show is a popular new trend called “overloading,” where trucks are fitted with tents for outdoor adventures.

“The floor kind of reflects the market in a lot of ways,” said Scott Lambert, president of the Minnesota Auto Dealers Association.

Pricier models continue to be a driver of new auto sales in the U.S. The new buyer market nationally has become increasingly reliant on higher-income earners as the sticker price of new vehicles continues to tick up and affordable models have become harder to find.

A December analysis from Cox Automotive found the share of new car sales to households earning under $75,000 per year dropped 30% since 2019. During the same time, households earning up to $150,000 a year fell 7%, while those making above $150,000 rose 45%.

As the average new car price has crept up near $50,000, historic tariffs threatened to push new car prices even higher last year. Auto manufacturers shielded consumers from those increased costs, though that may not last.

In Minnesota last year, the threat of tariffs did not move the needle on prices but drove some car buyers to the showroom, Lambert said. A springtime sales surge hit dealerships, and another jolt came in late summer as a federal tax credit worth $7,500 for electric vehicles phased out.

“There was a lot of that anxious buying going on,” Lambert said.

Statewide sales last September were up 6.1%, aligning with the rest of the country, according to data from the Minnesota Auto Dealers Association. At the same time, hybrid sales grew 35%, while used cars rose 2.4%.

Inventories at many Minnesota dealerships are swelling, Lambert said, and those dealers are eager to offload stock. He said a recent slowdown in sales, plus the comeback of manufacturer incentive deals to buy a new vehicle, are helping create a market more favorable to buyers of all types of vehicles.

Though Minnesotans continue to prefer trucks and bigger vehicles, the year ended softer than some expected on those models. Lambert attributed a ripple effect across the state from the economic distress felt in farming communities.

Carmakers notched strong year-end sales results, despite economic headwinds.

Detroit’s GM reported this week its annual sales grew 6% in 2025, even as the industry witnessed a fourth quarter decline.

Contributing to its year-end results was a spike in electric vehicle (EV) sales during the third quarter, followed by a 43% decline as federal government incentives ended. GM, a U.S. leader in EVs, reported in a securities filing a $7.6 billion hit to the business line as consumer demand wanes and federal incentives disappear.

Morningstar auto industry analyst David Whiston said a bigger proportion of new car sales are coming from the wealthy, and even economy models are becoming more difficult for many middle-class Americans to afford.

Though manufacturers continue to meet demands for bigger trucks and luxury SUVs, automakers are working to address the affordability gap for many Americans.

Cox Automotive, a service and technology firm, predicts sales overall in 2026 could dip by 2.4%. Some of the challenges ahead include a continuing bifurcation of the consumer market, aligning with what some experts call the “K-shaped economy,” in which higher and lower income households experience sharply diverging fortunes.

The monthly expense of new car ownership is setting records. A report from analysts at Edmunds this week showed 20% of new car buyers were paying $1,000 or more per month finance new car purchases.

Back at the auto show on Friday, Minnesota’s biggest new car shopping event of the year attracted enthusiasts, browsers and some serious car buyers.

Twin Cities wealth manager Bob Meints did not show up looking for a Lexus or BMW. He is after something more comfortable, probably a larger-body vehicle like a crossover. He is ready to part with his 2021 Toyota Avalon and is leaning toward a new Toyota Crown Signia.

“I haven’t sat in it yet,” Meints said Friday. He said the challenge is making sure to hit a price point that fits with his overall budget, accounting for future cost of maintenance.

The Dickhoffs ideally want to spend between $40,000 and $50,000.

“I don’t think we’ll buy brand new,” Jen Dickhoff said.