Monday, October 18, 2021
News Average New-Vehicle Transaction Price Soars To $40,000

Average New-Vehicle Transaction Price Soars To $40,000

Despite the pandemic and uncertain economic times, the year ended in strong sales which pushed the average new car price beyond $40k


  • The shift to SUVs and trucks is partially responsible.

  • Also, desirable latest tech and features are pushing prices up.

  • Used car prices are near $28,000.


It seems almost unbelievable that the average transaction price for a new vehicle has reached this point, and in 2020. To be fair, the end of the calendar year typically brings a number of incentives and deals but even so, $40,000 per new car at the end of 2020 is an astronomical figure. And for us Canadians, this is in American dollars.

Of the many reasons why this threshold’s now been crossed comes down to the choices consumers are making. In other words, we want trucks and SUVs. Furthermore, features and various technologies, typically offered in optional packages or on higher trim models are pushing buyers to pay for the extras.

Car salesman

The mathematics behind the amount, according to Road Show, are as follows: The average loan amount is $35,373 coupled to the average down payment of $4,734 gives us a total of $40,107. Most alarming is that the typical car payment is $581 per month at 4.6% APR over a period of 70 months.

Jessica Caldwell, Edmunds’ executive director of insights, said: “It might seem at odds with unemployment levels and the harsh financial conditions that so many Americans are finding themselves in right now, but the consumers who are buying new cars during the pandemic are clearly on the other side of the economic divide. They’re likely qualifying for the lowest promotional rates and feeling secure enough to put down more money to get the bigger vehicles and features that they want.”

Those who don’t qualify or can’t afford a new vehicle are turning to pre-owned wheels but the bargains aren’t what they used to be. By the end of 2020, the average used car price was $27,689 which includes a $3,283 down payment.

Trending Now

2022 Toyota Tundra First Drive: A Serious Contender, But…

2022 Toyota Tundra Pros Impressive powertrain lineup Vastly improved infotainment A lot more comfortable and usable 2022 Toyota Tundra Cons Late availability for the hybrid...

Lucid Motors to launch DreamDrive, rival to Tesla Autopilot

Lucid Motors will launch its driver assistance system called DreamDrive Two versions will be available, with or without Lidar This is not a...

2022 Volkswagen Jetta to Have Improved Fuel Economy

  The base engine will be the 1.5L miller cycle four-cylinder out of the Taos Epa estimated mileage will be 35 MPG (6.7 L/100km)...

Honda Will Launch a New EV Brand in China for 2022

The brand will be called e:N Series Honda will only launch electric, hydrogen or hybrid vehicles in China from 2030 The new models...

GM Ultra Cruise to enable hands free driving in 95% of driving situations

Ultra Cruise will be useable on every paved road in the US and Canada The less capable Super Cruise will be offered on...
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.