DETROIT, MI – As the prices of new cars continue to increase, many Americans are unfortunately finding themselves being priced out of the market, with the lowest earners in the country currently finding their dream of owning a new vehicle slipping further and further out of reach to the largest degree in the past decade.
In March 2023, the average price of a new car in the United States reached $48,000, which represents a whopping 30 percent increase over the past three years. In 2017 consumers looking to purchase a new vehicle for under $20,000 had 11 options to choose from; as of March 2023, they only have two.
There are numerous factors contributing to this rapid increase in the prices of new vehicles in the country, spanning from inflation, global chip supply shortages and increasing production costs. It doesn’t help that consumers are also being hit in the wallet via interest rate hikes from the Federal Reserve, making it even more difficult for many people to afford a new car.
As per research by Edmunds, the average monthly payment for a new automobile hit an all-time record high of $730 per month in the first quarter of 2023, an $80 increase over the same period of time in 2022.
In addition to the many financial hurdles plaguing Americans in recent years, another reason why new vehicle ownership is becoming somewhat of an elite club is due to the fact that many car manufacturers are choosing to build more and more high-end, expensive models as opposed to more affordable budget vehicles.
And on top of everything else, consumers still have to contend with all of the normal expenses that come along with auto ownership, including gas, repairs, and insurance, all of which have seen a steady reduction in affordability as well as of late.
However, the time of year that you choose to go car shopping can help; many experts consider May to be the best time of year to do so, considering that many dealers at that point need to get rid of older inventory – and will be offering discounts – to make room for new models. In addition, most dealerships hold Memorial Day sales at the end of May which can also help people to stretch their dollars.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.