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The Carscoops page cites a study by Edmunds, revealing a significant gap between average car prices and American consumers’ desired spending levels.
Specifically, 48% of respondents indicated they would only be willing to spend up to $35,000 on a new vehicle. Interestingly, this figure also represented the average price of a new car back in 2018.
Moreover, a surprising 14% of those surveyed by Edmunds stated they would not spend more than $20,000 on a new set of wheels.
According to Edmunds’ data, no new car transactions in July fell below the $20,000 mark. Further insights reveal that the current average price of a new car in the US stands at $47,716.
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Average car prices in the US exceed consumers’ desired spending levels. Illustrative image: Best Selling Cars Blog. |
Per Carscoops, the rise in average car prices between 2018 and 2024 can be attributed to inflation. Aside from price hikes, changing interest rates also play a role in making consumers more hesitant to pull the trigger on a car purchase.
Edmunds’ survey found that over 73% of respondents had delayed buying a new car due to high prices, while 62% cited unattractive interest rates as a reason for their hesitation.
Around 75% of those surveyed deemed interest rates of 6% or lower as reasonable, and a substantial 60% believed that acceptable interest rates should range from 4% to 9%. According to Edmunds, the average interest rate for car purchases in the US during July was 7.1%.
In the used car market, 27% of consumers stated they would only be comfortable spending up to $10,000 on a pre-owned vehicle. However, in reality, only 5% of the secondary market offerings fall within this price range.
Aside from those delaying their car-buying plans due to high prices and interest rates, approximately 54% of those surveyed shared that they intend to work overtime or take on additional jobs to accelerate their savings for a new car.
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