The prices of the car hit about $50 000 for the first time as the cost of the car is spam
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Prices are trending higher and the average cost of a new car is very high, approaching the $50,000 mark for the first time.
The average purchase price of a new car in October was $49,105, according to data from EDMUNS. That represents a year-on-year increase of 3.1%.
“This has been something we’ve all been waiting for, I don’t think anyone has expected the price to drop,” Ivan Drubre, director of Insights at Edmunds, told FOX Business. “Combined with a large portion of EVs being sold, naturally, the more expensive EVs, it kind of pushes us over the edge.”
“Take all that away, there’s nothing but a car you can buy today that’s cheaper than it’s been since a year ago, two years ago,” Drust said. “The average age of trade-in for a new car is like five-and-a-half to six years right now. People buying in 2020 and 2019, and mostly entering Shock Sticker. “
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New car prices are approaching on average $50,000 for the first time, creating challenges for consumers. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
“If you’re a buyer with a trade in, and you’ve never been in selling anything outside of a resource in six years, you’re going to be inundated with price observations that average $10,000 more than last,” it added.
– It’s common Monthly payments In new cars sold in October they saw a similar increase of 3.2% from last year and reached $766 per month. Interest rates were released gradually, as the average rate fell from 7% to 6.9% in October.
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The new prices are significantly higher than five to six years ago, leaving buyers facing sticker shock when looking to trade in a car. (Stock / istock)
Drubry said there’s a funny downward trend with loan rates on new loans below 7% and older loans at 4% or 5% – meaning new auto loans will be more expensive.
“The average interest paid over the life of the loan today, your average amount to be financed is $43,000; a 72-month term is the most; so you can pay for the car in that time,” said Drub.
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Retailers have increased discounts amid stiking peak prices and higher interest rates. (David Paul Morris/Bloomberg via Getty Images)
Auto dealers have stepped up Standard discount It is available to consumers, although those have provided modest assistance. The average discount was $1,985 in January, hit its highest level of the year so far at $2,262 in June, and was $2,240 in October.
“Financially, they’re going back to providing discounts. They’re getting money from car players to put money under the hood,” Drust said.
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“The average car is sitting for about 60 days, which is considered acceptable by industry standards. But it also affects the long term in terms of the situation, where for sellers, the better, the lower,” he said.
