Why are new cars so expensive in the US?

However, fast-forward to today, and the average new car costs about $30k, which is about seven months' median wages (still about $55k median household income). read more

“The new reality is that cars are becoming more expensive,” said Steve Pounds, a personal finance analyst for Bankrate. “People are having to make tough decisions about financing.” The average price of a new car or light truck in 2016 is about $34,000, according to Kelley Blue Book. read more

So, you’re right to note that cars are, in fact, becoming more expensive as a percentage of annual gross income, and so financing is becoming the only real option. There are several reasons: Today’s new model lines have standard (or at least common) features that were luxury options or didn’t even exist 25 or 30 years ago. read more

Cars are so cheap here literally anyone can afford one. It’s when you turn to new cars that they get so expensive. The cheapest new car for sale in the United States is the Nissan Versa S, which carries an advertising-friendly base sticker price of $11,990. read more