A 'bifurcated economy' is keeping some car buyers out of the market

• 10-20% of car shoppers are sidelined by affordability issues, one expert estimates.
• More affordable car segments were most popular among buyers in July.
• The new and used car market is operating between 5 and 10% below true potential.

The automotive industry is in danger of running out of rich people, according to one economist.

Cox Automotive's chief economist, Jonathan Smoke, spoke at a recent industry conference about the effect a "bifurcated economy" is having on the car business. Wealthy consumers are still willing to pay up for expensive cars, while another 10-20% of the market is sidelined by affordability issues, he said.