Car ownership has long been integral to the American dream. But as automakers slash the production of inexpensive models to cater to customers who can afford oversized pickups and sport utility vehicles, buyers find themselves facing sticker shock at the same time they are already frustrated by the lingering effects of high inflation.
Consumer prices rose 3.3% in March, the biggest yearly increase since May 2024, while new car prices were up 12.6% from a year ago, the Labor Department reported Friday.
New vehicles now sell for an average of nearly $50,000, up 30% in six years, and average monthly payments — based on 10% down and a 6-year note — recently hit $775. Looking for something on the cheap end? The share of vehicles listing for less than $30,000 is about 13% — down from 40% five years ago, per the car review site CarGurus.
New vehicles have been selling for an average price of $50k for years now. I don’t know where they’re getting their data, but I’ve read this same article numerous times over the years already.
I’m 60, I’ve never bought a brand-new car, and I doubt I ever will.
The car I’m driving now, which is two years newer than the car I drove for 18 years, is a 2006. I paid $6000 for it about eight years ago, and I’m very happy with it.
Yep, I find it insane people who buy a new car every few years. Cars don’t just die after 4 or 5 years of use. Most of my Toyotas have 300k miles on them and are early 2000s. They will last way longer than most people assume. Just maintain the damn things.
As the owner of an 01 Tacoma I can confirm, the damned thing is basically a modern Model A/T. It has a good chance of lasting 500,000 miles and being resurrected afterwards.
We’ll have our walkable cities for sure at this rate.
We’ll have more people walking in cities, anyway.
Does US media know the difference between average and mean or median?
Yes and they use them all to get you to click.
Car prices will rise until all cars are self driving and nobody can afford to own them so you will rent driving time when you need transportation. This rental time will be even more expensive than ownership but it will be all you can afford.
You will get deals from driving subscriptions, but the ownership model will go away almost completely someday and big companies will continue to reap the rewards.
I really love my e-bike more with every day
The rest of the world will just buy Asian cars and get on with it.
That’s a good thing from an environmental perspective.
Not necessarily. Same number of people are doing the same amount of travel by car, but now instead of the car sitting at parking lot it is driving off to do another errand. More efficient in terms of fewer cars needed, but overall it’s more vehicle miles and more congestion.
They’re going to be EVs, so it’s still a net positive for the environment. Fewer EVs means less lithium mining.
Less cars on the road also means increased safety, especially when self driving technology is more mature. Humanity is absolutely horrible at driving safely.
Plus, when you factor in all of the costs of owning and properly maintaining a car, a subscription service probably saves you money.
Fewer cars does not mean fewer cars on the road. Autonomous cars means more cars driving on the road at any given time as now you have empty cars going from person to person. It’s less safe from a total VMT perspective. And they sure as hell will use this as an excuse to not give us mass transit.
I don’t disagree there
This supports my hypothesis that living in the city with buses and trains is worth the higher costs.
I’ve been saying this for years but it has taken the current political environment for people to not treat me like an idiot for thinking it.
We sold our car and moved to a modern developed city. Only been in on taxi in 8 months, but we ride the trains every day and walk to the local stores for most things. It works great and I would hate to go back to a car centric old world place.
Sounds like a dream. Maybe the UK will one day reach this level of transport integration.
The UK is making some progress. I know Edinburgh and Glasgow are building as they can. They need to get back to digging tunnels soon since trams are great, but very speed limited.
London is world class for pedestrian access and the biking infrastructure is coming along nicely. Get Oxford Street pedestrianized and you’ll have a jewel in the shopping district.
The smaller cities do hold onto a kind of vision where cars are the modern day horse ride through the countryside, but once the rail network gets renationalized and back up to speed there will be more demand for local transit improvements.
Including the stress from noise, lights, and concentrated pollution? I’m not sure.
Most of the noise and pollution in cities comes from cars, many of which are driven by people who live in the suburbs and drive into the city…
People who live in the suburbs are exposed to Far higher levels of pollution from being in traffic and get far less exercise. Cities are not loud unless you’re in a tourist area.
The only noise I hear is my music playing from a speaker and a fan. I’m getting natural light from the windows. I have curtains in my bedroom that turn it into a cave.
The pollution, maybe. A lot of that is caused by cars. My parents lived out in the suburbs, but rather close to a major highway that wasn’t good for environmental quality, and was loud.
Cities aren’t loud. Cars are loud.
I’m not fretting, I’m simply not buying anything other than necessities until Pedolf is gone. I’ll have a nice little pile of cash ready to go, assuming this nightmare ever ends.
For purchases that can be deferred without it being too painful, it’s probably a good idea on purely financial grounds, since some of purchases now are going to go towards taxation, paying tariffs. Trump’s earlier tariffs were overturned by the courts, but now courts are looking at the new, global, 10% tariff. Assuming that a future administration will roll back tariffs (or, I suppose, if courts overturn this and later attempts by the present administration at imposing tariffs) the same money would go further then.
Oh totally. I’m mostly doing it to create a financial buffer against uncertainty and because I want to do my (very small) part to damage Pedolf’s economy.
This has been news for 6 years… Associated Press really did axe their employees to think this is a story.
There is always a choice. If those overweight SUVs would be resting like lead in the showrooms and only the smallest and most cost effective offers actually move, producers would adapt. They aren’t. (I am aware that producers do their best to advertise those high margin oversized cars but that doesn’t change the above).
In Europe we have been seeing a similar trend, for some time. However I am happy to report that this appears to be changing right now. Not long ago, almost all new EVs were some oversized and overweight SUV stuff for fantasy prices. Finally however, we are starting to see more and more compact EVs that are practical, reasonably sized and relatively reasonably priced as well. Take the Renault 5 and soon the Renault Twingo for example. The former in a good version with big battery 33k EUR, the latter 20k EUR.
One of the main considerations when my wife and I got our larger car was all the other larger cars in the road. Nobody wants to be on the receiving end of texting soccer mom’s Escalade in a subcompact.
Are there actual studies proving that the risk to your life is truly meaningfully increased, more than lets say by voluntarily mildly speeding or being distracted by talking to others in the car etc? To me this sounds a lot like paranoia where people are readily increasing the lethal risk for others (pedestrians, especially children, cyclists etc) for mildly reducing their own risk and then they use all kind of feel good ideas to justify that to themselves.
I don’t feel like one should need a study to tell them which will win between a 2000lbs car and a 4000lbs truck that sits higher. But here you go:
“We typically find that smaller vehicles have high driver death rates because they don’t provide as much protection, especially in crashes with larger, heavier SUVs and pickups,” said IIHS President David Harkey.
That’s not a study, it is a quote from a local news source (that can’t even manage to be not blocked in Europe). The quote is also oddly unspecific and the subsequent example given is of an outdated car with lacking safety features, not sold like that anymore.
Anyhow, if big cars are the problem, than the solution is not to increase the problem but to regulate deadly big cars. Why do you think car traffic lethalities in Europe are actually decreasing, even though cars are getting bigger, while in the US there is a stark increase in road lethalities even though most people are driving oversized and overweight cars?
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Kelley Blue Book isn’t a local news source, or even a news source at all. They specifically deal with cars.
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The article was about a yearly study done by the Insurance Institute for Highway Safety.
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Since I control the world I’ll get right on making sure everybody else has a smaller car and not doing what I can currently to about my wife’s safety on the road.
Seriously, why are you even taking this position?
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A brand new motorcycle is only a few thousand. They basically pay for themselves in fuel costs after a year or two.
New? Maybe a Chinese scooter around here. Cheapest motorcycle i can think of is 5k not to mention all the bs dealer fees the bike shops charge. Then there’s the fact that auto drivers care less and pay less attention to motorcycles than ever before. They seem to have the mentality of “it their fault for riding a motorcycle”. Meanwhile you’re splattered across the road. I miss my bike but no way i’d ride around here.
Also funeral bills are cheaper than hospital bills.
Plus there’s a perpetual shortage of organ donors
Carbrained bikehate. Normalizing motorcycle use and road safety reduces squid-like behavior.
Yep. There’s always a new crop of motorcycle riders who think they’re the greatest thing.
Seems like the average is inflated with $100,000 extended cab pickup trucks with luxury features. Which have taken over the market.
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Good thing my daily driver is a bike.
Get them hooked then raise the price.
New vehicles now sell for an average of nearly $50,000
The share of vehicles listing for less than $30,000 is about 13%
So you can get a car for less than 30k, but those models don’t seem to be in high demand
I was gonna say this as well. The average is $50k but no one is forcing you to buy the average priced car. The low cost end of that range is still under $30k (for now). You can still get a reliable Toyota/Honda/Subaru/Mazda sedan or compact SUV with that. What’s actually already disappearing are the under $20k cars. My Kia Soul back in 2020 was just $19k.
Sitting at a Toyota dealership this moment waiting on the hybrid I’m interested in to come back so I can test drive it. The list price is like $34,000 with a number of extras.
I drive for work (hospice) so I put on the miles, and it’s just that time.
