I can't believe that the average price of a car in the U.S. is almost $50k. For rapidly depreciating assets. Here I am working out TCO costs for a range of mid-sized cars for my next purchase, and trying to decide if the extra $2k for a Prius Prime over a Prius will beat the differential in fuel costs for my driving situation. I feel like a chump, but I know it's the smarter thing to do with my money. I coworker of m…
Some Americans. The average car in the US is 12 years old. I just checked my local craigslist, most cars of that age are under 10k, and almost none are more than 20k. Since that is average we can assume cars of that age will run (with maintenance) for another decade and so shouldn't be very expensive. Of course at that age almost nothing is electric.
I have an 18 year old car that I purchased used long ago and currently has no mechanical issues. I've had a few repairs but nothing terribly expensive. I have no interest in replacing it.
When you think about it, people who are frugal will buy practical and cost effective cars and drive them for a decade or more (that is, if they buy a car at all!). That means they either never buy new at all, or when they do they do so only seldom.
People who are chasing the new shiny will continue to churn through new shiny. And of course they want to pay a lot to get only the shiniest.
So I can see why the average new car cost would creep up, because buying a new car at all is a luxury in most cases.