Average price of new car in the US: $40,000

[Top_Fuel]

The average price for a new car in the US crossed the $40,000 threshold for the first time last year.

• The average new car price paid in December 2020 and the fourth quarter of last year: $40,000
• The average amount borrowed for a new car in the fourth quarter: $35,373
• The average down payment: $4,734
• The average new car payment: $581 for 70 months
• The average price of a used vehicle in the last quarter of 2020: $27,689

Source: Average new car price crosses $40,000 in 2020 and that's nuts

[Clessy]

Down payments are for suckers with bad credit imho. Every $1000 is approximately only $15 a month of your car payment. If you cant pay off the car that money is better used as a safety net incase **** happens.

Car payments, education and housing all the things literally draining peoples bank account each month and making impossible for them to get out of the hole.

[Subcompact Culture]

Pretty amazing, eh?

I never want to turn into one of those people who's like [OLD MAN VOICE]Back in my day, coffee was only 10 cents a cup![/OLD MAN VOICE]

I've been without a car payment since about 2015 or so and I don't want to go back to it, frankly. Plus, my interests generally have been toward smaller, less expensive cars and JDM 4WDs.

TBH, I'm not sure I'll ever buy a brand-new car ever again. My 2017 Mirage was the last new car I've bought, but it was $9,600. I saw a Chevy Spark at the mall yesterday and it was $15,000 for the base model—no power locks, no power windows—which I find incredible in this day and age.

Anyway yeah: $40K. Lots of cash.

[2of9]

Insane. I mean, if it's within their budget, more to them. But damn, a car that's $40,000 and immediately drops in value the moment it leaves the lot is insane. I remember looking at a fully loaded 2016 Maxima (back in 2016) for $38k at one dealership. I couldn't believe it. I think back then, the Maximas were floating around 25-29k brand new. But still, just 5 years later, most of them are under 17K with super high miles.

I wonder if people are just 'sold' into the 'new car' thing. 2 years back, my brother and I assisted an aunt (aunt was having a 3rd kid on the way) about buying a brand new Toyota iA. For some odd reason, the freaking sales guy was pushing to sell the iA to her. We were asking my aunt why she wanted such a small car. She was "sold" on it because the trunk was super roomy. If you guys haven't been in a iA, I feel like it's basically similar to the Mirage G4 sedan. We told her not to get it because (1) room (2) not awd (she wanted awd) (3) price (IIRC, it was 'the last one' with some options on the lot and priced at 19K). Like, we had to explain to her for a while that the car was not a good buy, especially since she had a 3rd kid on the way. We persuaded her to get a Van (but the Sienna's prices were/are still insane). THANKFULLY, she went with a HRV (at least it was AWD). 1 year later, they went with a used Sienna.

Anyways, the cost of a new car is pretty insane. I don't think people realize how much a car loses it value once it's off the lot.

I think it still shocked me that a Tundra is $45k+ and a fully loaded AWD Sienna was $60k. lol That....that is just absurd. lol

[dragon2knight]

Buying a new car has always been a poor financial choice no matter the price. Anything that depreciates instantly is a bad investment. I always go for at least a year prior to a cars latest year for sale before buying, the depreciation is already is done and I end up with an almost new car with a still decent warranty depending on the brand at a significantly lower price out the door. That's why I went for my Mirage, I have the remainder of the 5/60 warranty and that's longer than some new cars warranty's new, a great thing for sure. I've never paid over $15,000 for any car in my life, and that'll never change.

[Fummins]

If you guys think buying a new car for $40,000 is stupid.....I spent(wasted) over 15 years throwing money away buying pos fixer uppers then then driving them into the ground and selling them at a loss or trading for some other piece of crap.

Now people make steaming pant loads of money making videos of themselves doing that.

It doesn't matter how much I spend on a vehicle they all end up needing something relatively expensive lol. Especially if they have a diesel engine.

[Dirk Diggler]

I suspect we will see the return of the subcompact ****box in the states in the next 5 years or so.

[Mark]

The average price for a new car in the US crossed the $40,000 threshold for the first time last year.

• The average new car price paid in December 2020 and the fourth quarter of last year: $40,000
• The average amount borrowed for a new car in the fourth quarter: $35,373
• The average down payment: $4,734
• The average new car payment: $581 for 70 months
• The average price of a used vehicle in the last quarter of 2020: $27,689

Source: Average new car price crosses $40,000 in 2020 and that's nuts

I like comparing two things about today's vehicles. One is the new vehicle cost (which is $40,000 on average now), & the other is the average age of vehicles on the road. That's nearly 12 year old now. Last research I had seen was 11.9 years for average vehicle age on U.S. roads.

[Clessy]

If you guys think buying a new car for $40,000 is stupid.....I spent(wasted) over 15 years throwing money away buying pos fixer uppers then then driving them into the ground and selling them at a loss or trading for some other piece of crap.

Now people make steaming pant loads of money making videos of themselves doing that.

It doesn't matter how much I spend on a vehicle they all end up needing something relatively expensive lol. Especially if they have a diesel engine.

You gotta get that sweet spot car. A 2 year old used car is a great value or a old as hell slow as hell car is great. If you get a 90s toyota or honda for around $3000 the cost of ownership is virtually nothing.

[dragon2knight]

You gotta get that sweet spot car. A 2 year old used car is a great value or a old as hell slow as hell car is great. If you get a 90s toyota or honda for around $3000 the cost of ownership is virtually nothing.

That was my way of doing things for the longest time. But in the Rust Belt said Toyota's/Honda's didn't/don't last too long so finding a good one these day's is almost impossible. That's why I caved in and financed my Mirage. No regret's at all to be honest as the Mirage has features/safety those old Corolla's only wish they had.