Americans are now paying an average of $12,182 to own and operate a brand-new vehicle, or $1,015 per month

9/14/2023

Americans are now paying an average of $12,182 to own and operate a brand-new vehicle, or $1,015 per month, per the AAA.

Meanwhile, buying a car has become extremely expensive as now only 8% of new vehicles cost less than $30,000, down from 38% during pre-pandemic levels, according to CoPilot. This means that the car market is at record low affordability.

CoPilot CEO Pat Ryan gave a statement regarding the state in the new car market today.

Ryan: “It’s the least affordable car market in modern history... Those that have the least ability to pay are getting the car that’s going to cost the most to own.”

Ivan Drury, the director of insights at Edmunds' also gave a statement regarding the situation, tackling how increasing demand resulted in more cars being stocked while carmakers were upgrading their lineup.

Drury: “There’s a war of features... It only makes sense to continue to ratchet up the price to offer more features and increase the size of the vehicle with each redesign,”

It was recently reported that US new car prices returned to pre-pandemic numbers amid a recovery in supply. This came as annual new car sales increased to 15.6 million in June.

In March, it was reported that new vehicle average prices have increased by 30% since 2019 to almost $50,000. This came as the new vehicle's average price in the US cost buyers almost $50,000.

See flow at unusualwhales.com/flow.

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