Are You Keeping An Old Car On The Road Because New Cars Are Too Expensive?

Key Points:

• The average price of a new car in the U.S. has reached nearly $52,000, making it unaffordable for many Americans who often lack even $1,000 in savings amid declining jobs and wages and rising living costs.
• New car sales have dropped 3.6% compared to last year, while the average age of passenger cars on the road has increased to a record 14.5 years, reflecting both affordability challenges and improved vehicle longevity.
• Many consumers are choosing to keep older cars longer, as modern vehicles from around 2012 remain reliable, efficient, and easier to maintain than ever before.
• Rising monthly car payments, now averaging over $700, combined with insurance, fuel, and maintenance costs, are deterring buyers from new cars, even among those who could theoretically afford them.
• Personal anecdotes highlight a preference for maintaining older vehicles to avoid high costs and lack of appealing new car options, emphasizing financial prudence and lifestyle considerations over new car ownership.