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Buyers fret as the average cost of a new car nears $50K
Consumers are stretching loans to 7 years as 12% of buyers choose them, while new-vehicle prices climb and cheaper models become harder to find.
- On Friday, the Labor Department reported new vehicles now sell for an average of nearly $50,000, up 30% over six years, with average monthly payments hitting $775 based on a 6-year loan.
- Automakers have largely phased out cheaper sedans to prioritize more profitable SUVs and pickup trucks, while supply chain disruptions and tariffs have pushed prices higher, according to David Undercoffler, head of consumer insights at CarGurus.
- CarGurus data shows used vehicles priced under $30,000 fell from 78% of inventory in 2021 to 69% in February, while the average used vehicle sold for about $25,000 with payments hitting $560.
- Consumers are extending loan terms, with 7-year loans now accounting for more than 12% of all sales, up from nearly 8% a year ago, according to J.D. Power; Sam Dykhuis, a United Airlines scheduler in Chicago, tapped savings to buy a 2021 Mazda CX-5 outright, saying "My paycheck went down and my expenses went up."
- Ford said it would have several vehicles priced under $40,000 by the end of the decade, while General Motors pointed to cheaper options like the Chevrolet Trax; drivers are meanwhile holding onto cars nearly 13 years on average, according to the Bureau of Transportation Statistics.
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Average new car price nears $50,000, squeezing middle-class buyers
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 its 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…
Associated Press News+41 Reposted by 41 other sources
Buyers fret as the average cost of a new car nears $50K
Vehicle ownership has long been a big part of the American dream. But it is getting harder for some buyers as automakers pare back cheaper models to chase well-heeled customers who can afford big, loaded pickups and SUVs.
·United States
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Coverage Details
Total News Sources50
Leaning Left18Leaning Right6Center24Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
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