In recent times, there has been a steady pattern in the rate at which vehicle average car price rises. Although the cost of each particular vehicle may vary concerning the type of vehicle, as well as, the carmaker the general statistics can help to provide you with more insight on what can be considered affordable and anticipation for strong future resale value if you decide to make a car purchase shortly.
Thinking of Buying a Car?
Ever since the time of the 2008 Great Recession which took place in the United States of America, not only were home loans were affected. The prices of new cars have continued to rise and middle-income Americans are most affected as the cost of living increases remain considerably stagnant. It’s an ongoing topic of how Millennials are more and more relying on public transportation, such as ridesharing apps Uber and Lyft, as their primary form of commute rather than leasing or buying a car.
What Has Changed?
If we consider the statistics from 2017, you get to see that new car prices were fixed at just over $36k on the average. As of 2012, just 5 years back, the average price for a new car was just a little above $83k. When it comes to used cars, its average price went from almost $17k to about $19k within the same timeframe according to the statistics.
Supply and Demand
There are a lot of factors that contribute to the rise in prices and the increase in the rate at which consumers are demanding for SUVs and trucks are playing a huge role. These vehicles happen to be costlier when compared to most passenger cars.
Average Car Price
Since new cars now have a very exorbitant cost, if we consider how much depreciation occurs once a vehicle has been purchased and driven off the dealership lot, a used car could likely be a more affordable alternative. There is a large market for used vehicles due to the cost savings. Used cars sold annually amount to millions and are about twice the number of brand new vehicles that are sold every year too.
According to NBC, as of June 10, 2019, President Trump has enforced tariffs that affect Mexican manufactured vehicles along with vehicles assembled in the United States. Trump proposes a tariff increase to be in effect on October 1, 2019, which could result in Mexican manufactured vehicle prices to jump. The average car price is expected to increase the sticker price by $10,000 and more, and would also affect European and Asian car manufacturers. The tariff is meant to decrease American consumers’ spending on Mexican products. However, the United States is also experiencing record-high vehicle prices and a decrease in American-made manufacturing.
Choosing the Right Vehicle
When it comes to determining the vehicle that is appropriate for you, there are lots of factors to consider besides the average car price. These factors include your wants and your needs. You need to first determine why you need a vehicle and what you expect the vehicle to do for you. Here is a list of things to brainstorm:
- High crash test rating
- High MPG
- Trunk space
- Blind-spot monitoring
- Good handling
- Higher model than the base
- Leather interior
- Surround sound
- High horsepower and brake horsepower
- All-terrain drive
Additionally, you must narrow down the features that you expect your car to come with before going ahead to make a purchase. For example, fuel-efficient hybrid cars have become increasingly popular but the price to replace the battery commonly exceeds over $1,000.
Another factor to consider is your budget. Your financial circumstances are very important when deciding to purchase a vehicle, especially if you are buying new and need to put a down payment. If taking out an auto loan is your best option, you will find flexible financing options that can help you.
With long-term auto loans, you will likely make more interest payments than if you went for an auto loan with a shorter repayment term. It’s recommended that you take into consideration what the aggregate loan cost over the entire period of the loan is. You should do this rather than focusing your attention on how much you’re expected to pay monthly.
Do some shopping around to locate a lending company that matches your needs and that you’re comfortable with. Doing so can help you determine the average car price, the overall average car payment, and what you can afford.
Car Loans of America
At Car Loans of America, we have built a customer-centered loan process. Our loan conditions are flexible and give you a wide range of choices. No matter what kind of credit score you have, you can come to us. We will provide you with an auto loan that matches your needs! It doesn’t matter if it’s a new car loan or a used car loan. Co-borrower applications are accepted by us.
Once getting approved, you will be presented with different offers. This will be done concerning your unique car buying wants. It’ll come with the choice of going for any of the offers that appeal to you.
If you get approved, all you have to do is fill out our loan documents. After, you pay the dealership that you have chosen a visit! Or, you can make use of our Car Loans of America dealer locator to locate other options around the area. Whether you’re trying to understand a branded title or what an auto loan can do for you. We’re here to help!
Car Loans of America is part of a network of registered car dealerships. You’ll be able to find new cars, as well as, used cars. Once you have our loan documents, you have nothing to worry about. When shopping for a car of your choice, you’ll go with the ease of mind.
Fill out our online form or call us at 866-601-2749.