This makes sense to me. The average age of cars on the road has increased by 10% (~1.5 years) in the last decade, reducing the number of new cars needed to maintain equilibrium.[1] Wealthier people buy new cars (and pay the absurd premium) which then trickle down to the rest of the market through secondary sales.
The reality is that a five-year-old car today is most likely more reliable than a new car built 25 years ago. A similar dynamic can be observed in the cell phone market.