Looking to wheel and deal for a new car? Hit the brakes until you're confident you've found the right ride.

Answer: $48,808

Questions:

• Why do you think the average price of new cars is so high? Discuss the factors that might contribute to increased prices.
• How would you budget for a purchase like this? Consider aspects like down payment, monthly payments, interest rates, insurance, and maintenance costs.
• Cars often depreciate in value once they are driven off the lot. How does this depreciation impact the financial decision to buy a new car versus a used car?
• As a young adult entering the workforce, how would the high cost of new cars influence your decisions about transportation, housing, and other major expenses?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Kelley Blue Book):

• The overall average transaction price (ATP) for a new vehicle in the U.S. rose slightly in June 2023, with most of the increase coming from higher luxury vehicle prices.
• Electric vehicle (EV) ATPs in June were down nearly 20% from their peak of $66,390 one year ago.
• Incentives increased for the ninth consecutive month in June to the highest level since October 2021, averaging $2,048, or 4.2%, of average transaction price.

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NGPF's Buying a Car mini-unit will help give your students the confidence they need when they tackle this intimidating purchasing process!

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About the Author

Ryan Wood

Ryan grew up with and maintains a love for learning. He graduated from the University of Wisconsin-Green Bay with a degree in Business Administration and worked in sports marketing for a number of years. After living in Texas, Colorado, Tennessee, and Minnesota, the call of education eventually brought Ryan back to his home state of Wisconsin where he was a Business and Marketing teacher for three years. In his free time he likes to spend time with his wife and daughter, play basketball, read, and go fishing. Now with NGPF, Ryan is excited to help teachers lead the most important course their students will ever take.