The cost of new cars is high! Here is something to keep in mind. Keeping and maintaining your existing car could be a great investment! The average cost of service for most cars is $800 to $1200.00 per year.
Consider these facts:
Just 8% of new cars on the market right now cost less than $30,000. That’s down 38% from before the COVID pandemic began in 2020.
In 2017, the average cost of a new vehicle was around $35,000. Today, it’s nearly $50,000, according to CNBC. 10% of all vehicles sold cost more than $70,000. That is an increase of 7% from five years ago.
According to an Edmunds report, the average price for used cars are 44% higher than five years ago. Thankfully, the price has dropped 6.4% in the first quarter of 2023.
Interest rates are also hammering buyers of both new and used vehicles. The average annual percentage rate (APR) on new vehicles bought in the first quarter of 2023 jumped to 7%, compared to 4.4% a year before. This is the highest level since the first quarter of 2008.
“Consumers paid an average monthly payment of $730 for new vehicles in the first quarter of 2023, compared to $656 a year ago, according to Edmunds. For used cars, consumers paid an average monthly payment of $551, a slight increase from the $542 they paid last year,” Fox reported.
Monthly payments exceeding $1,000 has hit a new record. 65% of auto buyers who have $1,000 monthly auto payments have an average loan-term range of 67 months and 84 months, with their average APR rate between 8.5% and 9.6%.
There are better ways and worse ways to spend $1,000 per month on a vehicle.
Certified Auto Specialists: the friendlier and more helpful auto shop! Feel free to call 626-963-0814 with any questions and we will be glad to help, or visit our website at CertifiedAutoCa.com.
Hometown Service You Can Count On!
