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.
Chinese? A Kawasaki Ninja 500 is beginner friendly and has an MSRP of $5,4000. Add another $1k to get kitted out with a decent helmet and gear. So maybe $6,500 overall to get you started with a bike that does 50mpg.
You’re gonna get dealer fees with a car or a bike so the difference is negligible, same goes for taxes or anything else on top of the MSRP. Either way that’s over $40k saved going off the $50k car pricemark. Add another $40k or $80k to the car’s price depending on how poorly you financed it.
Those car prices go nuts once you add in the financing.
I don’t believe others being unsafe is a valid reason not to consider motorcycles as the same can be said for bicycles or any other mode of personal transportation that’s not a car.