New car prices have been rising consistently over the last year.
This amount excludes insurance, maintenance, fuel, and other expenses.
If you’re shopping for a new vehicle at the moment, you’ll probably have quickly noticed that cars are far more pricier and expensive than you remember. What’s more, deals and rebates are a rarity and, to top it all off, interest rates are sky-high too. All these factors have increased the average New vehicle monthly payment to a whopping $712 in the US.
There are many factors at play including the pandemic. Although we’re all quite convinced it’s behind us, the financial side-effects will be with us much longer. Microchip and various part shortages have impacted the cost of building new vehicles, a cost that inevitably gets passed on to buyers.
As well, and relatedly, automakers are developing and building cars and SUVs that are more technology-packed than ever, and these technologies must be paid for. Factor in the weeding out of truly affordable compact cars in favour of SUVs and paying $700 per month for a loan starts to make sense.
NPR further reports that the average new vehicle price reached a budget-busting $47,148 in May. While increases should be limited over the coming summer, there are no signs that prices will drop any time soon.