Car ownership has long been integral to the American dream. But as automakers slash the production of inexpensive models to cater to customers who can afford oversized pickups and sport utility vehicles, buyers find themselves facing sticker shock at the same time they are already frustrated by the lingering effects of high inflation.
Consumer prices rose 3.3% in March, the biggest yearly increase since May 2024, while new car prices were up 12.6% from a year ago, the Labor Department reported Friday.
New vehicles now sell for an average of nearly $50,000, up 30% in six years, and average monthly payments — based on 10% down and a 6-year note — recently hit $775. Looking for something on the cheap end? The share of vehicles listing for less than $30,000 is about 13% — down from 40% five years ago, per the car review site CarGurus.
Haha yes that’s what we did too, we could buy a new car for the same we paid for a 4 year old car. But we wanted to be able to pull a trailer, and we wanted a better than minimum battery, and the luxury of the bigger car is of course nice too. 😋
We got the VW ID.4 a CUV which means it’s built like a real car, not some pickup truck construction that avoids regulation, that American SUV’s often are.
The CUV is an amazing drive with perfect handling, an SUV is not.