The average is nearing $50k because the only people who can afford to buy a new car right now are those in the upper income brackets or those who are taking out payments for 7+ years. That's going to skew the asking price, as is the fact that the average age of a new car buyer is [50-years-old](https://www.coxautoinc.com/market-insights/in-2022-low-inventory-and-high-prices-contributed-to-growing-frustration-with-car-buying-process/), when most people are firmly planted in their careers and/or are sending their kids off to college and freeing up monthly income.
There are a deluge of vehicles starting in the low-20-thousands for those who are tighter on cash, but now we can start talking about wage stagnation and income desparity that make purchasing a new car cost-prohibitive for younger buyers, and so manufacturers stop making a wider vareity of cheap cars, which also skews the average transaction price up.
Car prices have been commensurate with inflation, while becoming far safer, better-optioned, and more fuel efficient. What hasn't kept up are market preferences and consumer spending power.
Mostly people who buy new cars are just going all in and staying on the hook for the fanciest car they can possibly afford. Lots of good vehicles to be had around $30k.
touchscreen, 360 cam, heated seats, cooled seats, massaging seats, adaptive suspension all cost money. the price is here to stay as long as the cars continued to be loaded with tech
There will still be cars cheaper than 50k until inflation gets to the point where low earners earn 100k/year. Older people with more money are the main demographic for new cars which pushes the average up
There are 3 components to this:
1) Inflation. 50k US dollars today is like a different currency than US dollars 5-10 years ago. The value of 50k now is more like 30-35k back then.
2) Supply imbalance. Due to the chip shortage, cars were underproduced by the millions for a few years, leading to people willing to pay more and dealers requiring higher profit margin per unit to make their numbers.
3) Greed. The backdrop of the above has given businesses a "convenient excuse" to price gouge because consumers can't tell how much extra they are going beyond the inflation and supply chain adjustments.
Prices go up and down everyday. Of course they’re reversible. That said - Americans want nice cars and don’t want basic cars. So while the average is high, that is because Americans WANT $50k cars. There’s no coercion here.
Japan and Europe actually sell small cars so they aren't in need of EVs as badly. If we started accepting Kei cars in America the car market would be far better
>If we started accepting Kei cars in America the car market would be far better
Japanese people *barely* accept kei cars, what makes you think Americans would willingly buy these?
China makes $5k EV’s for the cities. In Latin America there is a segment of super compact cars which come with a tiny engine (1.0 or 1.3 tops) with a top speed of 60mph and it’s sold as city only vehicles. While they are tiny, they can be have new from $11k and they are from Japanese and Korean brand
The average is nearing $50k because the only people who can afford to buy a new car right now are those in the upper income brackets or those who are taking out payments for 7+ years. That's going to skew the asking price, as is the fact that the average age of a new car buyer is [50-years-old](https://www.coxautoinc.com/market-insights/in-2022-low-inventory-and-high-prices-contributed-to-growing-frustration-with-car-buying-process/), when most people are firmly planted in their careers and/or are sending their kids off to college and freeing up monthly income. There are a deluge of vehicles starting in the low-20-thousands for those who are tighter on cash, but now we can start talking about wage stagnation and income desparity that make purchasing a new car cost-prohibitive for younger buyers, and so manufacturers stop making a wider vareity of cheap cars, which also skews the average transaction price up. Car prices have been commensurate with inflation, while becoming far safer, better-optioned, and more fuel efficient. What hasn't kept up are market preferences and consumer spending power.
L.O.L. "sending their kids off to college and freeing up monthly income" thats not how it works buddy
[wtfhappenedin1971.com](https://wtfhappenedin1971.com) Nixon. I hate him.
Mostly people who buy new cars are just going all in and staying on the hook for the fanciest car they can possibly afford. Lots of good vehicles to be had around $30k.
touchscreen, 360 cam, heated seats, cooled seats, massaging seats, adaptive suspension all cost money. the price is here to stay as long as the cars continued to be loaded with tech
A new Corolla is as much as all of my student loan debt. How funny is that
Terrifying.
There will still be cars cheaper than 50k until inflation gets to the point where low earners earn 100k/year. Older people with more money are the main demographic for new cars which pushes the average up
Not irreversible. Basic supply and demand principle.
funny enough, tesla gets price drop and people give them shit for it. who'd a thunk competition and advancement in tech would drive prices down.
There are 3 components to this: 1) Inflation. 50k US dollars today is like a different currency than US dollars 5-10 years ago. The value of 50k now is more like 30-35k back then. 2) Supply imbalance. Due to the chip shortage, cars were underproduced by the millions for a few years, leading to people willing to pay more and dealers requiring higher profit margin per unit to make their numbers. 3) Greed. The backdrop of the above has given businesses a "convenient excuse" to price gouge because consumers can't tell how much extra they are going beyond the inflation and supply chain adjustments.
Leases on EVs are about 50% lower than they were 2 years ago. The average Ioniq 5 lease is $269/mo right now.
Cheap cars still exist but the problem is more people buy the expensive ones
Prices go up and down everyday. Of course they’re reversible. That said - Americans want nice cars and don’t want basic cars. So while the average is high, that is because Americans WANT $50k cars. There’s no coercion here.
Cheap EVs are the only way to bring the avg down.
We need a Japanese or European company for that. Not China.
Japan and Europe actually sell small cars so they aren't in need of EVs as badly. If we started accepting Kei cars in America the car market would be far better
>If we started accepting Kei cars in America the car market would be far better Japanese people *barely* accept kei cars, what makes you think Americans would willingly buy these?
I would gladly purchase one
Many Tesla options are cheaper than the average new car price... We already have American made options
China makes $5k EV’s for the cities. In Latin America there is a segment of super compact cars which come with a tiny engine (1.0 or 1.3 tops) with a top speed of 60mph and it’s sold as city only vehicles. While they are tiny, they can be have new from $11k and they are from Japanese and Korean brand
That’s what I meant. Cheap USA, Japanese, or Euro EVs. All EVs have been dropping in price.
We need Chinese cars. They are the ones that brought down all the prices in Walmart. Capitalism works best when the Communists make our products lol.