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What Is The Average Price Of A Car

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Powertrain Extended Car Warranty Cost Comparison

Average new car price hits record $41,000

If you’re just looking to protect the most essential components of your vehicle, you might consider a powertrain warranty, which covers the engine, transmission, and drivetrain. We reached out to the same providers above for quotes for a 2013 Toyota Camry with 92,000 miles and received the following prices. Each powertrain plan came with a $100 deductible.

Warranty Company

Monthly Extended Car Warranty Cost

Down Payment

Secure for 6 years/75,000 miles

$110.85 for 30 months

Silver for 5 years/60,000 miles

$190.00 for 18 months

Gold with an unlimited term

$109.00 monthly

Driveline for 4 years/75,000 miles

$65.82 for 48 months


Of the four providers listed above, Protect My Car offered the lowest overall extended car warranty cost. The company has some of the longest financing terms on the market, so you can space out your payments over several years if that’s how you would like to pay.

The unlimited plan from CarShield may be cheaper than Endurance and CARCHEX on a monthly basis, but because there is no specified time at which your monthly payments would stop, if you have the plan for a few years, you could actually end up paying much more in the long run. With Endurance and CARCHEX, your plan is paid off within 18 to 30 months. This is just one aspect to consider when determining which extended warranty is right for your lifestyle and budget.

Many Can Afford The Higher Prices

For both new and used, the high demand is partly pent-up demand from the Covid shutdowns. In addition, Covid made people think twice about using public transportation or ride-sharing. Finally, in historical terms, U.S. households are also sitting on unusually high savings, according to Cox Automotives Chesbrough.

Accumulated savings were $3.9 trillion in late summer, almost double the year-ago level, he said in the webinar.

Despite rising gas prices and somewhat shaky consumer confidence, That level of pent-up savings isnt going to be spent quite that quickly, Chesbrough said. We can be concerned, but we dont need to over-pessimistic about it.

Under the circumstances, automakers have cut back on new-vehicle discounts. Kelly Blue Book said incentives as a percent of average transaction price fell to 5.6% in August, down from what was a 10-year low of 5.9% in July, and down from 10.1% in August 2020. Those trends have continued into the fall.

What Is The Average Monthly Car Payment

Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities.

Are you thinking of purchasing a new car? While visions of family road trips, highway joyrides, and that new car smell may be filling your head, chances are you will have to think about something a lot less fun before you drive your new set of wheels off the lot: paying for it.

Most Americans who live in cities where driving a car is necessary are also finding it necessary to take out an auto loan when they purchase that car. In 2018, more than half of all used cars and a full 85.1% of new cars were financed through a loan.

The average monthly car payment on a new vehicle in 2018 was a hefty $545, and the average car loan had an average length of 69 monthsthats over five and a half years.

If youre thinking of purchasing a new car and taking out an auto loan, its important to understand the factors that go into determining your average monthly car payment so that you can determine what sort of loan makes the most sense for you.

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How Much Is An Electric Car

Buying a new car is a major purchasing decision, and there are many factors to consider when deciding what vehicle is right for your needs. When electric cars were first introduced into the market, manufacturers designed and marketed them as luxury vehicles to consumers with higher-than-average salaries.

Buying a new car is a major purchasing decision, and there are many factors to consider when deciding what vehicle is right for your needs. When electric cars were first introduced into the market, manufacturers designed and marketed them as luxury vehicles to consumers with higher-than-average salaries.

But with concern about climate change and protecting the environment growing, more manufacturers releasing electric vehicles, and the cost of electric cars dropping, purchasing an electric vehicle is becoming a more realistic option for younger generations and consumers with an average income. Here is what you need to know about the cost of electric cars.

What Is The Total Cost Of Owning A Car

Average new

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Calculating the total cost of owning your car or one you might buy soon is the best way to make sure your auto budget is in line.

The average monthly payment on a new car was $575 in the second quarter of 2021, according to credit reporting agency Experian. But thats far from the true cost to own a car.

For vehicles driven 15,000 miles a year, average car ownership costs were $9,561 a year, or $797 a month, in 2020, according to AAA. That figure includes depreciation, loan interest, fuel, insurance, maintenance and fees.

» Buying a car?

*Note: The total car cost calculator is pre-populated with estimates based on data from Experian, AAA, GasBuddy.com and the National Conference of State Legislatures. See our methodology below.

The calculator is pre-populated with estimates based on 15,000 miles of driving per year, so we strongly urge you to enter your exact expenses to see your total car costs.

and insurance premiums are self-explanatory, but heres more information on estimating other costs of car ownership.



For more cost-cutting tips see these .

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Pros And Cons Of A New Car

Driving a new car means you’ll get access to the latest technology and features. Also, you’ll have fewer worries about your car breaking down, and you’ll have a manufacturer’s warranty included if it does. In terms of financing, new cars are generally cheaper than used cars.

That said, new cars depreciate quickly, especially during the first year. New cars often lose more than 10% of their value in the first month after they’re purchased and more than 20% after the first year of ownership. So if you didn’t put a lot of money down, you might end up owing more on your loan than the car is worth this can cause difficulties if you total the car or want to sell it. Also, new cars tend to be more expensive to insure than used ones, although actual rates can vary by make and model.

How Should You Approach Taking A Car Loan

Before buying a vehicle, you should figure out “how much car” you can realistically afford. While some experts advocate for the“15% strategy,” meaning 15% of your take-home pay would be the maximum amount you can put toward your monthly car payments, it’s smarter to take a look at your past loans as a gauge for future ones, Drury says.

“Ask yourself: Was it difficult to pay off each month or did I ever fall behind?” Drury says.

If you’ve never had an auto loan, try putting away the same amount of money you’d expect to spend on a car loan payment for three to six months. If the exercise causes you to go over budget, you can then “adjust accordingly and perhaps shift the saved money toward a down payment,” Drury says.

If you can’t pay it off in three or four years, you probably can’t afford the car to begin with.Ryan MarshallCertified financial planner

Another useful tool is to use an auto loan calculator, such as the one provided by Edmunds. By entering your zip code , details about the car you’re looking to buy, any applicable trade-in or down payment information, potential financing options and your credit score, you’ll get a monthly loan payment estimate, which can help you to determine whether you can afford the car in question and what your monthly payments would look like.

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How Much Does Car Insurance Cost By Company

Here we’ve listed average rates for full-coverage auto insurance and minimum-coverage auto insurance by company.

State Farm is the cheapest widely-available car insurance company for both minimum and full coverage.

Allstate is the most expensive on average for both policy types.

A minimum-coverage policy is the cheapest policy you can buy. As its name suggests, it only meets the minimum requirements for an auto insurance policy in any given state.

A full-coverage policy usually adds comprehensive and collision coverage to a minimum-coverage policy. It’s not as cheap as minimum coverage, but provides you with more protection for your car. In this case, we’ve used full-coverage policies with extra liability coverage over state minimums, with details provided in the methodology.

Average costs increase by more than 174%, and rankings change slightly if you’re looking for a full-coverage auto insurance policy.

What Is The Average Price Of A New Car In Australia

What is the latest with used car prices?

Aussies spend an average of $40,128 on new cars, according to Canstar Blues latest survey of new car owners. The average amount spent on small cars is only $27,092, while new sedans bring an average spend $37,846 and SUVs $41,697.

Its worth remembering a new vehicle is a long-term investment. Our survey found Aussies typically hold onto their cars for about six years before upgrading or switching models. Overall, the average cost of a new car will depend on a number of factors, including :

  • state taxes & fees
  • your financing structure and initial deposit
  • your specific car model and brand
  • which dealership you go to

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What Is The Average New Car Cost By State

This table shows the average new car cost across Australian states , based on a Canstar Blue survey of more than 2,600 new car owners.


Motorists in South Australia generally spend the least on new cars at $36,647, our research shows. On the other hand, Aussies in Tasmania spend the most on average, to the tune of $47,635. So, why do prices vary so much by state? Thats because overall car prices depend on a variety of factors including stamp duty, transfer fees, Compulsory Third Party insurance, registration fees as well as dealer delivery fees, RRP pricing structure across manufacturers, and so on.

But its not all just about the actual cost of buying a car, its also about the personal preference and budget of those buying the new car. With average earnings varying across the states, you would expect the level of disposable income to also have an impact on how much people are willing to spend on a new set of wheels.

How Much Do Australians Spend On New Cars

Posted by Megan Birot20/11/2020

Looking to drive a hard bargain on a new set of wheels? Of course you are! But first, its important to know how much a new car really costs and how much others before you have paid. Why? Because knowing your price will not only help you narrow down your search on the car model you can afford without stretching your budget, but also give you the confidence and facts you need to drive away with a great deal.

Thats why weve compiled this guide on average new car costs in Australia. Weve included average car costs by state, brand, model, fuel type, household income, and age group plus listed some car running costs to also factor in.

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We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

Annual Interest On A Car Loan Increases Nearly $200

Average Cost of an Electric Car UK 2020

Depreciation, a measure of how quickly a vehicle loses value, increased $45 to $3,334 per year, onaverage. While depreciation remains the single biggest cost of ownership, rates grew more slowly thanlast year meaning vehicles held their value somewhat better.

The steepest percentage increase this year came from finance costs.

Fueled by rising interest rates and higher new car prices, the annual average interest paid on a car loanclimbed by $176, to $920 a year. That’s a 24% hike and accounts for more than 40% of the increase intotal average annual new car ownership costs.

The sharp rise in annual average finance costs coincides with a trend among some car buyers to chooseloans that last for 72, or even 84 months. While these long-term loans offer lower monthly payments,buyers ultimately pay more than if they’d chosen a loan of 48 or 60 months.

“We found that for every 12 months a loan is extended, the finance charges increase, on average, byalmost $1,000,” Nielsen said. “And due to depreciation, buyers who opt for extended loans are usuallyupside down’ on their loan owing more than the vehicle is worth for a longer time.”

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Which Provider Has The Cheapest Extended Car Warranty Cost

Because pricing is affected by so many different factors, the cheapest vehicle protection plan for your neighbor might not be the same for you. We recommend reaching out to several providers and getting multiple quotes for extended warranties for different levels of coverage. Also, know that an extended warranty from the dealership is usually more expensive than a third-party option.

In our CarShield review, we found that the popular provider offers the Best Value in the industry. CarShield has been in business for over 15 years and offers coverage for vehicles with up to 200,000 miles on the odometer. The company’s six coverage tiers include a plan specifically for high-tech vehicles.

Protect My Car is a great choice for drivers who prefer long payment terms or maintenance benefits. Our Protect My Car review found that the warranty company can cover cars up to 125,000 miles under an extended warranty or cover older vehicles with maintenance contracts. And you can see from the quotes above that Protect My Car sometimes has the lowest total extended car warranty cost among top providers.

We also recommend looking into Endurance and CARCHEX. These providers both scored highly in our industry-wide review thanks to their comprehensive coverage and benefits, competitive costs, and exceptional customer service. Learn more in our full Endurance warranty review and CARCHEX review.

Use the buttons below to start getting free, personalized quotes from our top recommended providers.

How We Arrived At The Numbers

Here are the assumptions we made for the three scenarios:

  • Length of ownership: For new and used cars, we used the current average car-ownership period of 79 months, or just over 6.5 years.
  • Length of lease: Most people lease for three years. We assumed the costs involved two lease cycles to better match the 79-month ownership period for new and used cars.
  • Average new car loan term and interest: The average loan term for a new car in early 2021 was 68.3 months, or just under six years. We assumed a 72-month new car loan, which is close to the 68-month average and matches the length of leases in our leasing example.
  • Average used car loan term and interest: The average used car loan is about 68 months, practically the same as a new car loan. We used a 72-month loan to remain consistent with the other scenarios.

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The Opportunity Cost To Borrow Money To Buy A Car Is High

The $30,032 borrowed today for a car would be worth ~$50,293 in 10 years. This is based on a 5.3% annual growth rate if invested in the S& P 500 instead. If we use a 7.2% growth rate for the S& P 500, the $30,032 invested would be worth $60,140 in 10 years. Opportunity cost is truly a car buyers worst enemy.

Even if the borrower decided to invest his average auto loan monthly payment of $503 in the S& P 500 for 68 months, he would probably have over $40,000 invested given 68 X $503 = $34,204.

Is there any wonder why those who are frugal or follow my 1/10th rule for car buying end up much farther head financially than those with zero financial discipline? In 10 years, the $34,000 car will be worth less than $10,000 due to a ~70% depreciation schedule. The investor of the $30,000, however, could have investments worth 5-6X more!

Michigan Residents Pay The Most For Car Insurance

How Much Does It Cost To Paint A Car?

On average, Americans pay $882 annually for the minimum state-required car insurance. Compared to this, Michigans minimum insurance cost of $5,740 seems incredibly expensive. In fact, this high insurance price is what puts Michigan in the number one spot on our list of states where residents pay the most for their cars.

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