Buyers fret as the average cost of a new car nears $50K

[Yo_Mama_Been_Loggin]

DETROIT (AP) — After a few years of sharing a 2019 Chevrolet Trax, Dana Eble and Tyler Marcus are finally looking for a second car. But as they jump into the market, the young married couple isn't sure what they can afford.

“I just keep seeing a lot of different aspects of life getting more expensive, and it’s harder,” said Eble, an account manager for a public relations agency.

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.

-snip-

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.

https://autos.yahoo.com/deals-and-buying-guides/articles/buyers-fret-average-cost-car-040755329.html

[SheltieLover]

1. For vehicles with many plastic engine parts. Nope.

[Vinca]

2. I'm starting to wish when I bought my Rav4 in 2012, I'd bought 2 and stored one. It's insane.

The average cost of a new car these days is double what we paid for our first house.

[Dave says]

13. I bought m RAV4 in 2012. I have 163k miles on it. It's been entirely problem free. $30k when I bought it.

Adjusted for inflation, that's $43k in today's dollars. What does a 2026 RAV4 Limited cost today? (If I don't buy a RAV4 it's because they discontinued the V6.)

[Vinca]

18. I think the cheapest 2026 is about $40,000. Mine only has about 60,000 miles on it because I just drive it around town.

Recently, though, I had to get a fuel pump replaced and they also replaced the brackets that hold the gas tank on. They told me there was some corrosion on the frame and 1 of the 3 brackets wasn't as secure as they'd like it, but that it was safe to drive. I figure maybe I'll get through one more winter. If I were younger, I would have already traded it, but I'm at that age when you don't like to buy unripe bananas. LOL.

[Celerity]

19. The 2026 Toyota RAV4 Limited has a starting MSRP of $43,300

[Greg_In_SF]

3. They're not sure

what they can afford??

This isn’t rocket science. If you can’t pay cash for it, you can’t afford it.

[ck4829]

27. It looks like the new car market is almost as bad as the job market

[CousinIT]

4. I'll never buy new. They lose 30% of their value in the first 2 years.

But even used cars run $25K-$40K or more these days.

[multigraincracker]

8. Looks like a huge savings in buying a year old one.

30%.
I mean 2 year old one.

[mwmisses4289]

5. It's why the cars we are driving are five or more years old.

One was given to us by my in-laws when our old van died, the other we inherited when my mom passed away a few years ago.
At this point, it's just price gouging.

[Dave says]

14. I always buy new and drive it until the wheels fall off

I had to let go my 1998 Acura TL after 212,000 miles. My fault. I drove it like a sport utility model. Eventually damaged it (knocked a hole in the manifold, not worth repairing). It was a beautiful car, though. I'm thinking of buying another Acura now.

[CousinIT]

35. I'm driving an almost 20-year old car.

I am NOT buying another unless I absolutely HAVE to and then it will be used.

[sop]

6. 'Auto Loan Delinquencies Surge to 32-Year Record -- The Average Monthly Payment + Insurance Will Shock You'

"The American dream of car ownership is turning into a nightmare for millions...Subprime auto loan delinquencies have just hit their highest level in 32 years...At the same time, the average monthly payment for a new car has soared to $774 per month."

"More borrowers than ever are 60 or more days behind on their car payments...For years, lenders have been stretching out loan terms to 72, 84, and even 96 months to make sky-high car prices seem more affordable. Some credit unions are even offering 10-year car loans, a practice that industry veteran Brian Binstock calls a 'death trap for customers.' "

"Lending standards have been getting looser and looser, perhaps aiding to recent strain. Some lenders have been approving loans for people with credit scores in the 500s and incomes as low as $5,000 a year."

"The $774 monthly payment mentioned earlier is just the payment. When you add in the average cost of full-coverage car insurance, which Bankrate puts at $225 a month, you're looking at $999 a month just to own and insure a new car."

https://finance.yahoo.com/economy/articles/auto-loan-delinquencies-surge-32-150112001.html

[flvegan]

34. "10 year car loans"

That's almost certain financial suicide unless the interest rate is next to zero (or zero) and the intent is to keep the car damn near forever (good luck). Only other time I can think that's not a terrible decision is maybe if we're talking a serious collector car that probably isn't going to depreciate. Again, good luck with that.

[multigraincracker]

7. Add another 5K in interest.

[AZJonnie]

9. I'm pushing 60 and I've owned 5 cars in my entire life.

Only 4 I bought, the first was a hand me down from the grands at 17yo. Of those 4, I never bought a car that was less then 4 years old at the time. It's just not worth it to me to pay the kind of premium that a new car demands.

I've only owned 2 cars THIS CENTURY, in fact. Both made by Honda.

[Cheezoholic]

11. I have a 95 Integra with 300k miles on it. Can't blow'em up lol. I'm about done restoring the body. Vroom Vroom! lol n/t

[Dave says]

17. I had an Integra from the 1980s, gave it to my ex-wife at 180k miles

I forget the year, but it was the model right before they switched to the tiny circular headlights. It was a great car for me.

[Cheezoholic]

20. Bought mine for 500 about 7 years ago because the timing belt busted on it, pretty easy fix as long as they're high

up off the ground. I can barely check the oil without help now it sits so damn low. I did some additional work on the engine and rebuilt the manual transmission and am just finishing all new front end parts. Its the bubble eyes one. I was checking prices on these things lately and flipped out. Already offered 5k the way it sets. And they are fast! I had mine up to 137 before I chickened out. Had another 10mph in it easy lol. Can't believe they allowed a small car with a 125hp engine that redlined at 8k rpm and had a top speed of 150mph while your butts 8 inches off the ground lol. I'll never sell it unless I have to. Younger (and older now) "tuner" kids love them and its usually a youngster driving them like a bat out of hell. I always get a double look when I get gas and an old 6'2 white haired guy that looks like a cross between a hippie and a Trumpster pry's himself out. Dawg it gets harder and harder to get out of that thing every year lol. Might drive it to Jersey to get gas next lol (jking Those late 80's ones are even harder to find. Pretty penny for a junk one. But I'm sure many of us who are older think about the cars we've had in our past and imagine if we still had them. Could've probably retired 10 years ago with the 2 I had before I turned 21 lol.

Sorry, I digress

[AZJonnie]

23. One of those 5 was a '91 Integra

[oregonjen]

36. Michael J Fox did Integra commercials in Japan

I was living over there back then. Silly stuff one remembers.

[Cheezoholic]

10. I have never bought a new car in my life. I bought a year old Escape in 2003 for 15k dollars with 8k miles on it

Bought from a private seller, that was considered a "good" price for that vehicle at the time. It still had 4 years left on the warranty (never needed it). It lasted me 19 years and 325k miles before the tranny gave way. About 6 months after buying it I found the Dealer sticker underneath the back seat. 2022 from a local Ford dealer in SC for 24,999.

Anything newer than a 2010 -2012, unless you're good with cars its hard to do that anymore, especially if they're out of warranty. They're damn near impossible to work on yourself and even if you're good enough to do something like replace a transmission or something major yourself, you still have to take it to a dealer or a shop that has the expensive programming tools to reprogram the damn things just because the serial numbers don't match. That can be from 250 or so to 1500 bucks. I get recursive income but with todays autos its getting crazy. You can't even replace a windshield anymore without special programming (sorry I'm old and don't like it lol).

I have 4 vehicles and the newest ones are 2 2011's. One of them is pretty but all of them run as good as they did off of the showroom floor because I've worked on my own cars since I was 13. Stuff you have to learn when your poor

[musette_sf]

15. I miss my 2002 Volvo that I bought in 2010 for $6K

It really has been my fave car ever. Until 2023 when an idiot blazing out of the truck stop t-boned me. (He was probably on his phone.) Car was totaled and by then, the difference between new car $ and and good used car $ wasn’t enough to warrant the time and effort to find a good used one, as availability of good used cars wasn’t great. Bit the bullet and bought new though it hurt; I had enough cash on hand that I didn’t finance very much, but I still had sticker shock when I was pricing my options. All the assistive features in the new car are nice, but I’d still rather have the Volvo.

[Cheezoholic]

21. You bring up a great point about good used cars becoming more and more rare. They just aren't built

to go to the moon at least before they die for the most part anymore

[Bluetus]

12. The world is changing quickly. For people who own a home or are somewhat long-term renters,

and don't do frequent long road trips, you can cut your costs by at least 50% with an EV.

New EVs are as expensive as new gas cars (although considerably cheaper if you keep them for 5 years or more.) But the real deal is that there are loads of great used EVs that are great deals from the first day.

[Mysterian]

16. Never thought I'd live long enough to see $50k for just regular cars

Crazy as hell.

[RT Atlanta]

22. its obscene the costs for a new car... unaffordable for many

n/t

[hunter]

24. I bought a new car once, about forty years ago.

Been there, done that, won't do it again.

[The Madcap]

29. Same here.

I was stupid on the deal. Paid it off early as the interest rate was stupid. Never again.

[hatrack]

25. I would imagine the OEMs are fretting a bit more . . .

More than a "bit", if they've got any remaining attachment to reality.

[ck4829]

26. ... Golden Age!

[bucolic_frolic]

28. A car salesman told me years ago

We can structure a lease any way you want it. The key is not to wear out the car faster than you're paying for it. If you drive a car 50,000 miles a year, you're not leasing it. You're buying it.

[OC375]

30. Done buying cars.

I’ll run my $32k 2013 Jeep until it thoroughly spent. It would be cheaper to replace the engine & transmission than to replace the vehicle for $60-70k. Plus, it doesn’t turn off the engine at stoplights, nor does it require a can opener to work on. It has 70k, so I have some runway left.

Been a car guy since age zero, but I literally am no longer a car buyer, at age 55. I’ll figure out another way to move, or live smaller. Done. Gen X has moved on.

[Bluestocking]

31. You can buy a new Toyota Corolla for under 25k

No it won’t have leather or power seats. It will have all the safety features of a loaded version and will last 20 years. You don’t have to spend 50k on a new car. Base models last just as long and are just as safe. All new vehicles these days come with a/c and power windows and automatic braking.

[DBoon]

32. The average is distorted by the small number of sales of very expensive luxury cars

They should use the median sales price instead

[Woodwizard]

33. I wish a basic car and truck were still avaible.

I dread buying a new truck. My current 2009 Tacoma should last me another 5 years at least. I do my own repairs and maintenance.

It is basic, it is my work truck 5 speed manual roll down windows no power locks single cab 4wd.

Finding a manual transmission is pretty much non existent on trucks now. And I hate driving automatic.