Cars Are Costing Americans More Money
It's not just at the pump. You may be spending more money in getting your car repaired, as Newsy's national correspondent Cat Sandoval reports.
LEARN MORECar Buyers Left With Few Options As Difficult Auto Market Persists
Stubborn inflation coupled with supply chain issues have made the auto market feel impossible for consumers.
Car Buyers Left With Few Options As Difficult Auto Market Persists
Marta Lavandier / AP
September 15, 2022
Whether new or used, buying a car is tough these days. If you do find one, chances are the cost is sky-high.
"The price of a used car was the price of a new car, pretty much," potential car buyer Yesenia Maura said.
A new report shows consumers paid an average $44,559 for a new, non-luxury car in August. And the average used car went for just under $32,000 in July.
Stubborn inflation coupled with supply chain issues have made the auto market feel impossible for consumers.
Now, many are holding on to the cars they already have for longer.
"It used to be people would keep their cars eight years. Then it was 10 years. Now, it's 12-14 years the average person is keeping their car for," Ron Katz with Midas said.
But it's not just a problem for your average car buyer. Even police departments are having a hard time.
"This past Monday, we were notified that Ford canceled all of our orders for 2022 police interceptors," said Robert L. Ruxer III, law enforcement services division commander for the Colonial Heights, Virginia, police department.
The department was then given the chance to buy 2023 models instead. But that came at an extra cost of $7,500 per vehicle, which the city government ended up covering.
President Biden Touts Electric Vehicles At Detroit Auto Show
The president is expected to promote the new climate, tax and health care law that offers tax incentives for buying electric vehicles.
LEARN MOREIt's the latest example of automakers prioritizing their more expensive models at a time when potential buyers have fewer options. For example, Cadillac will soon debut a $300,000 electric vehicle.
It's a move that's paying off for luxury car makers. Porsche, which is expected to go public by the end of the year, is expecting to see $39 billion in sales for 2022, up 20% from 2021.
Meanwhile, consumers are left with fewer and more costly options.
0:28
Ford projects to lose $3 billion on EV business in 2023
Despite expected losses in 2023, Ford executives project the company's electric vehicle unit will turn an 8% profit margin by 2026.
Certain Hyundais and Kias may pose a fire risk. Here's what to do
More than 500,000 Hyundais and Kias have been recalled because of a problem with a tow hitch harness.
Dodge unveils final gas Challenger that goes 0-60 in under 2 seconds
The 2023 Challenger SRT Demon 170 boasts a powerful 1,025 horsepower and delivers the highest G-force acceleration of any production car.
Top Stories
One dead, several injured in roof collapse at Illinois theater
Severe weather is to blame for the roof collapse during a heavy metal concert at the Apollo Theater in Belvidere, Illinois.
2:09
Families still don't know if relatives died in fire at migrant center
Mexican officials made arrests in connection to a fire that killed at least 39 migrants, but some families don't know if their relatives are dead.
3:41
Her dad is a Russian Air Force pilot, she’s an anti-Putin activist
A Russian woman in Chicago leads a group of fellow exiles against Putin and his war.
