Apr 03, 2022
Question of the Day

Question of the Day: What is the average price of a new car in 2022?

Answer: $47,000 (increasing by $6,220 in 2021)

Questions:

  • What has caused the price to increase so much for new cars?
  • Why are manufacturers not selling as many affordable sedans?  
  • What happens to the value of a car once you drive it off the dealer's lot? 
  • Do you think about cars as an investment? Explain. 

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 average price Americans paid for a new car topped $47,000 for the first time in December. The average final transaction price last month was $47,077. The figure caps off a year of unprecedented price increases.

The shortage initially was triggered by COVID shutdowns that took out almost three months of vehicle production. A worldwide microchip shortage hit in mid-2021, just as the economy started to get back on its feet after the first phase of the COVID-19 pandemic. Newly vaccinated Americans began spending again, and many sought out new cars. But manufacturers couldn’t find the microprocessors they needed to keep up with demand.

But prices didn’t rise just because of low supply. Americans also bought more luxury cars than they usually do. At the other end of the scale, affordable sedans made up a small percentage of sales. In December 2018, nearly 30% of the new vehicles Americans bought were sedans. In December 2021, that figure slipped to a near-record-low 22.7%."

 

--------------------------

For more information on the chip shortage that is causing car prices to spike read: Chip shortage likely to keep car prices sky-high through 2023

--------------------------

 To receive a Question of the Day in your email inbox, subscribe to the NGPF Blog.

About the Author

Mason Butts

After graduating from UCLA with a Master's in Education, Mason spent 5 years as a science educator in a South Los Angeles public high school. He is committed to supporting the holistic growth of all students and empowering them to live a life of relational, academic, and financial success. Now settled in the Bay Area, Mason enjoys facilitating professional developments and partnering with educators as they prepare students for a bright financial future. When Mason is not building curriculum or planning a training, he can be found cycling, trying new foods, and exploring the outdoors.

Mail Icon

Subscribe to the blog

Get Question of the Day, FinCap Friday, and the latest updates from NGPF in your inbox by subscribing today: