"Consumer prices rose 3.3% in March, the biggest yearly increase since May 2024, while new car prices were up 12.6% from a year ago, the Labor Department reported Friday."
"New vehicles now sell for an average of nearly $50,000, up 30% in six years, and average monthly payments - based on 10% down and a 6-year note - recently hit $775."
"The rising cost of cars is contributing to increased concerns about affordability throughout American life. Consumers, especially young people, say they feel like everyday needs like housing, food, utilities and child care are getting costlier and wages aren't keeping up."
Car ownership is becoming less affordable for Americans due to rising prices and inflation. New vehicle prices have increased by 12.6% over the past year, with average costs nearing $50,000. The availability of cheaper models has decreased significantly, leading buyers to opt for longer loan terms, which increases overall costs. Consumers express concerns about affordability in various aspects of life, including housing and food, as wages fail to keep pace with rising expenses.
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