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.
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.