|
|
About 82% of Americans currently do not have the ability to afford a car. Illustrative image: ET. |
According to Carscoops, the high average price of new cars in the US combined with the limited number of affordable options has made the dream of owning a car increasingly distant for most Americans.
Since 2020, the prices of both new and used cars in the US have shown significant growth.
According to Carscoops, the manufacturer’s suggested retail prices of new cars in the US are now over 30% higher than before the pandemic. The situation in the used car market is not any more optimistic, with average prices currently about 38% higher than pre-pandemic levels.
In 2023, the pace of car price growth in the US has shown signs of slowing down, with an increase of only 1% compared to the previous year, according to Newsweek. However, the average price of a new car in the US remains relatively high, currently at $50,364, while used cars have an average price of $31,030 in the secondary market.
|
|
The high car prices in the US are making car ownership difficult for many people. Illustrative image: BCG. |
According to a study conducted by Market Watch, an American household needs a minimum combined income of $100,000 per year to afford a new car at the average transaction price. The average income per person in the US is over $50,000 per year.
This figure is based on the widely accepted financial principle that monthly car expenses (including the cost of the car, insurance, and maintenance) should not exceed 10-15% of the total income.
Based on this criterion, up to 60% of households and 82% of individuals in the US currently do not have the ability to afford a new car, according to Carscoops. The specific preference of Americans for crossover, pickup, and SUV models – which have higher prices than the average – makes car ownership even more difficult for customers in the US market.
“Consumers are currently paying more attention to car amenities and technologies such as cameras, sensors, radar, and infotainment screens. These factors are reducing the availability of low-cost car options, thus driving up the average price of new cars,” said Joseph Yoon, an expert at Edmunds.
|
|
|
Amenities and technologies in cars are driving up car prices. Illustrative image: BMW. |
However, according to Carscoops, the main reason for the high car prices in the US can be attributed to the pandemic.
Specifically, the current shortage of raw materials has disrupted production and affected the availability of new cars in the market, driving up the prices. This, along with the surging demand from customers, has also led to a growth in the prices of used cars in the secondary market over the pandemic period.
Although the supply is now stabilizing, experts believe that car prices, both new and used, in the US market will not significantly decrease in the near future.
Must-read books for the car
The Cars section brings readers interesting books on various topics. During the journeys with cars, it is not uncommon for us to have moments of rest, relaxation, and books are the fascinating companion of those moments.
Chery Jaecoo 7 PHEV arrives in Vietnam, with incredible fuel efficiency of only 1 liter/100 km
Geleximco, the partner of Chery, has recently showcased a range of Chinese car models, signaling their upcoming launch in Vietnam. This surprise move has generated anticipation as Vietnamese consumers eagerly await the availability of these vehicles in the market.
Euro 7 Emission Standards: Costly but Ineffective Assessment
Research has shown that the additional costs due to the Euro 7 emission standards are actually 10 times higher than initially estimated.
Latest Aston Martin 2023 Prices in Vietnam
Tinxe.vn presents to readers the latest 2023 Aston Martin car price list in Vietnam along with some information and reviews of these supercar models.
Mercedes-Maybach 2023: Latest Updated Price List for Mercedes-Maybach Cars 2023
Tinxe.vn presents to you the latest 2023 Mercedes-Maybach car price list. In addition, we provide some useful information for readers’ reference.
