PSA: The Average Price of a New Car in the U.S.

[rokdog49]

Reported today by the financial gurus:
What they said…
The average price for a new car in the U.S. is approaching 50K

What they didn’t say…
You can still buy a nice new vehicle for 20-35K depending on your needs

That’s all folks

[imwjl]

Originally Posted by rokdog49

Reported today by the financial gurus:
What they said…
The average price for a new car in the U.S. is approaching 50K

What they didn’t say…
You can still buy a nice new vehicle for 20-35K depending on your needs

That’s all folks

Yes. It is important to remember a now entry level vehicle has all and more than a luxury vehicle did for much of my life. A whole lot of average and above are so fancy and complicated it starts becoming unappealing to us.

We are in dealer queue for two next gen models but with a car that still has warranty, and our 8 year old van getting a repair today I get less and less excited to spend so much.

[fitness1]

I think the only car available in the US that is below 20k is now the Kia Rio LX sedan which is built in Mexico.

[Talk2Me]

And good luck finding ANY "affordable" car once the strike ends. If the CEOs of the major car companies simply dropped the price of their vehicles then they wouldn't have "billions in profits" for the Union to target. While they're at it those guys could stand to take some pay cuts too. Why are cars so expensive? Greed.

[buddyhu]

I did some internet sleuthing (so one never knows whether to really trust the info). But i found something that claimed the average car in 1970 cost $3542. Meanwhile, a new Ford Pinto (and other similar cars) was less than $2000. And I remember that $2000 was still very much beyond reach for me in 1970.

So even though the actual numbers have changed considerably, perhaps the relative cost of “an average new car” and “an inexpensive new car”, and “a good value new or used car” hasn’t changed all that much. Perhaps….

And as noted in another post: “entry level” cars have LOTS of things that weren’t available in 1970 (or even 1990), or that were considered “premium equipment”. I owned a Honda CRV, I think it was a 2008, that had hand cranked windows, manual seat adjustments, and you had to use the key to unlock the doors. Not many (maybe not any) cars that offer such low cost, low tech features today.

[Murphy Slaw]

Crank windows were fun.

Kids these days don't know what they're missing...

[imwjl]

Originally Posted by Talk2Me

And good luck finding ANY "affordable" car once the strike ends. If the CEOs of the major car companies simply dropped the price of their vehicles then they wouldn't have "billions in profits" for the Union to target. While they're at it those guys could stand to take some pay cuts too. Why are cars so expensive? Greed.

We can't forget the power of the marketplace. I enjoy what goes on at our small chain of grocery stores to measure thoughts and actions. What we have didn't occur overnight and we are a few years into seeing people do transportation differently. Our parking lots have e-assist bicycles and vehicles in car share fleets that didn't exist until recently.

You don't have to drive expensive vehicles. Rejecting that seems clear from our living in an expensive neighborhood.

Beyond or after any of that there is much competition now that didn't exist in all of my life. More makers, more brands, and the biggest market in the world China produces good vehicles whether the ones in partnership or their own. One of our members just posted the Buick for example.

For you other point and trying to be fair and accurate it doesn't look like the execs took the hit labor did when we were bailing the firms out. The percentage of vehicle cost that was labor and benefits dropped considerably and still remains behind where it was.

Originally Posted by buddyhu

I did some internet sleuthing (so one never knows whether to really trust the info). But i found something that claimed the average car in 1970 cost $3542. Meanwhile, a new Ford Pinto (and other similar cars) was less than $2000. And I remember that $2000 was still very much beyond reach for me in 1970.

So even though the actual numbers have changed considerably, perhaps the relative cost of “an average new car” and “an inexpensive new car”, and “a good value new or used car” hasn’t changed all that much. Perhaps….

And as noted in another post: “entry level” cars have LOTS of things that weren’t available in 1970 (or even 1990), or that were considered “premium equipment”. I owned a Honda CRV, I think it was a 2008, that had hand cranked windows, manual seat adjustments, and you had to use the key to unlock the doors. Not many (maybe not any) cars that offer such low cost, low tech features today.

It was posts here on some performance cars that had me look at the specs and original prices of popular 1960s and 70s vehicles mentioned against contemporary choices and using an inflation calculator. Things didn't look so bad.

We also have the alternative of better vehicles overall and a fleet that continues to age. List night I picked up our 8 year old van with a new water pump and tires thinking how nice it still is when something that old in the first 40 or so years of my life would no way be as solid and trustworthy.

Maybe the very high prices of cars and the light trucks will just be silent hands aiding and pushing to new or alternative choices and aiding innovation?

[Gitfiddlemann]

Originally Posted by buddyhu

So even though the actual numbers have changed considerably, perhaps the relative cost of “an average new car” and “an inexpensive new car”, and “a good value new or used car” hasn’t changed all that much. Perhaps….

I think you're right. I did some similar sleuthing yesterday and found out that the price of the car I bought 18 years ago, after adjusting for inflation, was not substantially less than what the new replacement model sells for now. And arguably, the current model offers more in HP and amenities.
So, that was a surprise, in a good way.

But I'm not very optimistic on buying my next car from any of those manufacturers located in UAW territory though. Sure, the CEOs make huge salaries, maybe too much, but they are the ones making the big decisions that guarantee work, wages and benefits for nearly 400,000 workers, not to mention pensions for the many more that are retired. If the unions got what they are now asking for, they likely would not be working for a long time. A lot of the EVs, including a bunch of major manufacturers, have moved south. You gotta do what you gotta do to stay in business. It's a tough market. Sometimes people forget to consider the big picture.

[RedJoker]

Cars in the 60's and 70's were reaching the end of their life at 100k miles. By 2012, the typical car lasted 200k miles. I think we're already heading into 300k mile territory for a typical car. That's hard to wrap my head around!

All of this longevity reduces total cost of ownership, even with these high prices.

[RP]

Originally Posted by buddyhu

I did some internet sleuthing (so one never knows whether to really trust the info). But i found something that claimed the average car in 1970 cost $3542. Meanwhile, a new Ford Pinto (and other similar cars) was less than $2000. And I remember that $2000 was still very much beyond reach for me in 1970.

I bought my first new car in 1972. It was a VW Super Beatle and cost $1995 plus tax...

Originally Posted by RedJoker

Cars in the 60's and 70's were reaching the end of their life at 100k miles. By 2012, the typical car lasted 200k miles. I think we're already heading into 300k mile territory for a typical car. That's hard to wrap my head around!

All of this longevity reduces total cost of ownership, even with these high prices.

I purchased my 2016 Honda CRV new. It pretty much meets all my needs, has a real live CD player, gets 29 mpg and I just installed Sirius radio. It's near 100,000 miles, I do regular maintenance and would love to drive it into my final days...

[Riverwolf]

Originally Posted by Murphy Slaw

Crank windows were fun.

Kids these days don't know what they're missing...

My 1994 Ford F-150 has wing windows too.
We call them the A/C.

[leew3]

Originally Posted by buddyhu

And as noted in another post: “entry level” cars have LOTS of things that weren’t available in 1970 (or even 1990)

Yes, they're less likely to burst into flames on impact. Having survived driving a 1970 Pinto, I'm very careful about safety in my old age!

[Murphy Slaw]

Originally Posted by leew3

Having survived driving a 1970 Pinto,

Drinking and driving and smoking cigarettes in a 1970 Pinto with crank windows was exciting and invigorating.

Kids today don't know what they're missing...

[imwjl]

Originally Posted by leew3

Yes, they're less likely to burst into flames on impact. Having survived driving a 1970 Pinto, I'm very careful about safety in my old age!

Beyond basic features brought up, current vehicles have highly effective safety systems as part of the cost. Now we're in a new stage of that with even light trucks forced by competition to add AEB, and headlights added as a safety measure.

For perspective, a Subaru Outback has AWD, good fuel economy, top safety pick and you can get that with more features than any standard mid or full-sized 1972 wagon for around $29,000+. Adjusted for inflation that's less than a 1972 Ford Country Squire started.

You can't buy a new Jeep CJ like a 1970s model but adjusted for inflation a Roxor is less expensive and has a turbocharged diesel engine no Jeep then had.

When many complain about prices they seem to forget more than adjust for inflation. We have richness in both of product choices and product features that were not even options or possible.

In the meanwhile I'm happy to wake up not feeling any new toy syndrome or covetousness though we are in dealer queue for vehicles no one will own for a while.

[Rolph]

I bought a '21 Jeep Wrangler Sahara. The car employs a Lot of plastic, and is very noisy at any speed over 35 mph. Dealer said could not fix, $55K? Off road custom shops said could make quieter for $3-5K. I wondered, after dropping $55K cash, why should I have to pony up another %5K to avoid Hearing Damage?

So the 3rd day I drove it, a foggy substance over 1/3 of the windshield, smells. Outgassing from plastic? Went for a drive, got a headache, proudly gave the car to my 19 y/o daughter, who is as responsible as I am at 73.
I've been driving the same British auto for 27 years with virtually no issues, a '97 LandRover Defender. I grew up in a family in the new/used car industry: Cadillacs, Pontiacs, Oldsmobile, Mazda. Maybe my standards are wrong, but I think American cars are junk. No color, no style, every car looks like a colorless Egyptian Scarab to me.
Wish I still had my 66 Kharmann Ghia.