Car prices are finally falling. Here's why people still aren't buying.

• Both new and used car prices are normalizing from pandemic peaks. But sales have flatlined, Bank of America says.
• Consumers are still priced out of the market due to rising interest and insurance costs.
• Some have turned to electric vehicles and hybrids, with EV loan originations rising steeply.

Car prices are falling back down to earth, in a steady decline from 2021 peaks. But that's no relief to consumer wallets, as car affordability remains low.

According to Bank of America, overall car sales have flatlined, despite post-pandemic recoveries ing both pricing and supply.