But beneath the surface, there are cracks in the glossy veneer. Shoppers are driving away with higher monthly payments that stretch across longer loan terms. They’re paying record transaction prices, even as wages lag behind. And according to new research, they’re not particularly thrilled about it.
A study released this month by the American Customer Satisfaction Index (ACSI) found that overall satisfaction among U.S. car buyers slipped for the first time in several years, falling one point to 79 on a 100-point scale. The decline, while modest, comes at a time when automakers are eager to win back loyalty in a hypercompetitive market that’s juggling shifting consumer tastes, new federal emissions rules, and the slow adoption of electric vehicles.
“Automakers are navigating a market where innovation and practicality collide,” said Forrest Morgeson, a marketing professor at Michigan State University and former director of research at the ACSI. “Customers expect advanced technology and efficiency, but they’re also scrutinizing every dollar spent. The brands that thrive will be those that can deliver meaningful improvements without losing sight of what matters most to drivers right now.”
Sales Rebound, But Drivers Take Notice of Costs
The current market reflects a paradox. After years of shortages fueled by the pandemic and supply chain snarls, the industry has returned to something resembling normalcy. According to Cox Automotive, total U.S. light-vehicle sales are projected to top 15.7 million this year, up more than 11 percent from 2024.
Yet with the average transaction price hovering around $47,000, according to Kelley Blue Book, affordability remains a stubborn problem. The share of Americans taking out loans of 72 months or longer has climbed steadily, and monthly payments over $700 are increasingly common.
That sticker shock appears to be weighing on how drivers rate their experience. Luxury vehicles, long seen as immune to price sensitivity, registered a one-point dip to 80 in the ACSI study. Mass-market models held steady at 79, but smaller niche brands dropped nine points, to 74, suggesting that buyers are reassessing the value of what they’re getting.
Subaru and Toyota: A Tale of Two Strategies
Among mainstream brands, Subaru emerged as a surprise leader this year. The company rose two points to anscore of 85, edging ahead of Toyota, which slipped one point to 82 and now shares second place with Mazda. Buick, GMC, and Honda followed close behind at 81.
Subaru’s rise has been powered by its reputation for safety and dependability — and by an unusually loyal customer base. Industry analysts say the automaker has leaned into its strengths, rolling out a redesigned Forester for 2025, a more powerful Crosstrek, and fresh trim options for the Outback and Ascent SUVs.
“Subaru has become more than a car company; it’s a lifestyle brand,” said Michelle Krebs, an executive analyst at Cox Automotive. “Its messaging around safety, family, and outdoor adventure resonates with a specific audience, and it’s paying dividends in satisfaction scores.”
Hyundai also gained ground, climbing three points to 80, thanks in part to a wave of new hybrid and electric offerings. Stellantis, the conglomerate that owns Jeep, Dodge, Chrysler, and Ram, saw declines across the board, a troubling sign for brands that once dominated the American market.
Lexus Leaps Ahead in Luxury
The biggest shift came in the luxury segment, where Lexus vaulted to the top of the rankings with a six-point surge, finishing with a score of 87. That placed it well ahead of Mercedes-Benz, down one point to 82, and Tesla, which slid two points to 81. Cadillac, down one point, tied Tesla for third.
Lexus’s success has been closely tied to its hybrid portfolio. The brand reported its best-ever first-quarter sales in the U.S. this year, with hybrids accounting for a growing share of deliveries. Five Lexus models ranked among the 15 most popular luxury hybrids in 2024, led by the RX SUV, which continues to dominate its category.
By contrast, Audi slipped four points to 77, and BMW fell five points to 75 — the lowest among luxury automakers surveyed. Analysts say both brands face challenges convincing buyers that their technology offerings justify premium prices, particularly as EV competition intensifies.
Tech Is the Draw — and the Disappointment
The ACSI study measures a wide range of customer experience factors, from driving performance to comfort to mobile app quality. Most of those metrics held steady in 2025, but several showed slight declines, including vehicle safety, exterior design, and onboard technology.
The most striking finding came from two new categories added to the survey: driving distance on a full charge or tank, and expected resale or trade-in value. Those debuted with scores of 74 and 72, respectively — the lowest of any measure in the study.
Hybrid owners rated both categories higher than their gasoline or EV counterparts, with driving range scoring 77 for hybrids, 74 for gas vehicles, and just 64 for EVs. Resale value followed a similar pattern: 73 for hybrids, 72 for gas, and 63 for EVs.
“Range anxiety isn’t going away, and now you can add resale anxiety to the mix,” said John Bozzella, president of the Alliance for Automotive Innovation, a trade group that represents most major automakers. “Consumers are worried about what their EV will be worth in three to five years, and that uncertainty is bleeding into satisfaction.”
The Hybrid Sweet Spot
The findings highlight the complicated role hybrids play in the American market. While EVs command headlines and billions in investment, hybrids have quietly become a bridge technology for consumers wary of infrastructure gaps and high prices.
In the first quarter of 2025, hybrids and EVs together accounted for roughly 22 percent of U.S. light-duty sales, up from 18 percent a year earlier. Yet satisfaction with hybrids slipped two points to 80, while EV satisfaction plunged five points to 73. Gas-powered cars, unchanged at 80, are now on equal footing with hybrids in overall satisfaction.
Luxury buyers show a similar pattern: hybrids scored 83, compared with 80 for gas models and 78 for EVs. The smaller spread suggests that even in the high end of the market, range and value anxieties are hard to ignore.
What Automakers Face Next
The slip in satisfaction comes at a delicate time for the industry. Automakers are under pressure to electrify their lineups to meet emissions regulations in the United States and abroad, while also managing costs and preserving profitability. Consumers, meanwhile, are signaling that they want innovation, but not at the expense of reliability or affordability.
That tension is playing out in dealerships. Buyers who once happily traded up for larger wheels or premium paint are increasingly questioning every add-on. Loan terms that stretch to seven years or longer mean that ownership experiences are lasting longer, too — giving customers more time to notice flaws.
“Cars are more technologically advanced than ever, but complexity can create problems,” said Karl Brauer, an industry analyst at iSeeCars. “If your infotainment system freezes or your advanced driver-assistance features behave inconsistently, it can tarnish the ownership experience, no matter how good the car looks or drives.”
A Mirror of the Economy
Some analysts view the dip in satisfaction as a broader reflection of the American economy. Inflation has cooled from its 2022 peak but remains above pre-pandemic levels. Interest rates are higher than many consumers are used to, making auto loans more expensive. And with household debt climbing, big-ticket purchases like cars are under sharper scrutiny.
“Consumers are stretched thin, and that reality is showing up in how they feel about their cars,” Mr. Morgeson of Michigan State said. “The automobile is still an aspirational purchase, but it’s also a necessity. When budgets are tight, expectations rise.”
The Bottom Line
For automakers, the message is clear: winning in the current market requires more than just filling lots with vehicles. It requires striking a balance between cutting-edge technology and everyday practicality, between aspirational design and attainable pricing.
Subaru and Lexus show that it can be done, leaning on reputations for safety, dependability, and value even as they experiment with new models and hybrid technologies. Brands that stumble risk more than just lost sales — they risk alienating customers who may be locked into their vehicles for years.
The ACSI Automobile Study is based on 9,949 completed surveys collected between July 2024 and June 2025. Download the full study