According to ISEECARS research, purchasing a new car now costs less than buying a used one in the US because used car prices climbed by 52% between August 2019 and August 2022 while new car prices increased by only 29% over the same period.
The study found that, in just 3 years, used car affordability fell by 26.7% and the cost of new automobiles rose by 13.3%, while, at the same time, the average family income in America increased by 13%.
For instance, the new Nissan Fronter cost $ 27,146 in 2019 but $ 39,833 in 2022. The used automobile market is worse; the cost of a Toyota Camry, which is three years old, increased from 16548 dollars in 2019 to 27404 dollars in 2022.
Karl Praor, executive analyst at ISEECARS, attributed the jump in car sales to a weak supply chain and rising demand.
In order to meet their costs, individuals may choose to borrow money at higher interest rates, put less money down for the initial batch, or forgo the original sort of automobile they desired in favour of one with a lower sticker price.
” The ability to bear the costs of cars is calculated by comparing the average family income with the ideal income for financing the car through the moderate car loan rates and conditions (a 60 -month loan for new cars and a 36 -month loan for used cars), the study assumes that the car payments should not increase based on 10% of the household’s yearly income.
The price of used autos climbed by 52% in America.
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