How much does a car cost?
Expensive repairs? Find a warranty to cover future costs.View Coverage
Updated Apr. 19, 2024Fact-Checked
By: Alexus Bazen
+1 more
Expensive repairs? Find a warranty to cover future costs.
View Coverage
The following companies participate in our Authorized Partner Program: Kia
Both new and used vehicles have increased in price since 2015, though consumers are only willing to spend less than half of the purchase price for these vehicles. During the COVID-19 pandemic, global supply chain shortages were rampant, and automakers took advantage of the scarcity by producing expensive vehicles to maximize profits.
Now that inventory is returning to normal, automakers have surpluses of vehicles and projections indicate lower purchase points and higher buyer incentives and trade-in values. However, since cheap, used cars are in high demand, consumers may have difficulty scooping them up before they leave the dealer’s lot.
Key insights
The average cost of a new vehicle is $48,759, and the average cost of a used car is $26,446.
Jump to insight
At most, consumers are willing to spend an average of $21,310 on a new or used car.
Jump to insight
The full-size SUV is the most expensive new vehicle body type, at an average of $72,405. The midsize sedan is the least costly, at an average of $32,595.
Jump to insight
Trade-in values are impacted by depreciation, brand reputation, wear and tear and other factors. New car owners can expect up to 60% depreciation over five years.
Jump to insight
Following the COVID-19 pandemic, trends project that car buyers will purchase more used vehicles, and sellers will be hard-pressed to provide incentives to empty their car lots.
Jump to insight
General car price statistics and trends
The average cost of a new vehicle was $48,759 in December 2023, representing a 5% increase from the previous year. The average price of a used vehicle by the end of last year was $26,446, a decrease of 3% from 2022.A 2024 ConsumerAffairs survey found that the highest price people are willing to pay for a vehicle was $22,090 for a new car and $18,464 for a used car. And yet, only two out of five respondents looking for a new vehicle could identify potential options in their price range.
As the market begins to turn and favor buyers and the demand for less expensive vehicles increases, auto dealers will also be pushing into the used car market.
Cheaper vehicles are also being purchased quickly, making it difficult for car dealers to maintain inventory. Auto dealers in the U.S. report that vehicles under $10,000 only tend to stay on the lot for an average of 35 days. In contrast, cars over $35,000 are left on dealer lots for nearly two months.