I've been thinking about this problem quite a bit so I'll try to explain it in my own words, after reading over the past responses.
The first sentence is the evidence:
The average price paid for a new car has increased in relation to average individual income.
The second is the conclusion:
Therefore, individuals who buy new cars today spend a larger amount relative to their incomes than their counterparts.
For the sake of simplifying, let's just assume that average individual income stays the same. So,
the argument is saying that a higher average price paid means a higher average price paid by individuals. Do you see where the argument is weak? It is assuming that what occurs in general can be applied to a subgroup (individuals). Now, with that in mind, let's look at the choices.
(E) says that sales to individuals are a smaller proportion compared to what they used to be. This hits the argument where it is weakest! It weakens the argument because it questions the inference the author is making, which is: "What is true in general (the average price paid) must be true for individuals (average price paid by individuals)."
As a thought experiment, let's assume that 25 years ago there were two people, Bob (who purchased a new car for 20% of his $10 income, or $2) and Jill (who purchased a new car for 10% of her $10 income, or $1). The average price paid for a new car is $1.50. The ratio is 1.5:10.
And then, today, Bob buys another new car for the same price, 20% of his $10 income, or $2. But, Company A also buys a new car. Except, they buy it for $10.
This follows the evidence right? The average price paid for a new car has increased in relation to average individual income.
1990 - 1.5:10
2015 - 6:10
Okay, so you look at the ratios above and you say "This increase in average price paid shows that individuals are spending a larger amount relative to their incomes."
But, that doesn't make sense, does it? Because Jill didn't even buy a car. So the amount that individuals spend, on average, actually
decreased relative to their income ($1 per individual or a ratio of 1:10).
(E) shows that you'll have to look past the ratios above and find out the average price paid
of individuals in order to properly draw the conclusion.