Question of the Day: What is the average price of a new car?
Looking to wheel and deal for a new car? Hit the brakes until you're confident you've found the right ride.
- 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?
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.
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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