How Old Is Your Car? Americans Set New Record as Prices Stay High
Once again, Americans set a new record for driving older cars.

One of the reasons why Americans are holding onto their older cars is because of the high prices new cars bring. Kelley Blue Book reported the average car buyer spent $49,740 on a new vehicle in November of 2024. That's only $218 short of the record for the average price set in December of 2022.
So, why are prices so high for vehicles? In 2022, there was a limited supply driving up costs. However, that isn't the case in 2024. One of the reasons why the average car price is so high is because more car owners are preferring luxury brands, with higher price tags. Sales of vehicles $80,000 and over increased 37% compared to December of 2023.
Want to buy a new car? There are mixed signs on the horizon
Despite the trend of aging cars, there is evidence that new car prices are getting somewhat more affordable.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Buick and Volkswagen had their average year-over-year sale prices fall by 7% and 6% respectively. And Mitsubishi's average sale price dropped by 12%, according to Kelley Blue Book.
How long will this trend hold? It depends on what the future holds. During his trip to the Super Bowl, president Donald Trump announced a 25% tariff on all steel and aluminum imported goods.
If that goes into effect, the price dips seen by some manufacturers could go away. To demonstrate, a $25,000 car imported from Canada or Mexico could increase up to $6,250, according to S&P Global Mobility.
And car manufacturers would pass that cost onto the buyer. Therefore, if you're in the market for a new vehicle, sooner than later might be your best bet before the proposed tariffs could into effect.
Other factors impacting car affordability
Of course, driving a car comes with more costs than just that purchase price, and drivers have been feeling a crunch across multiple waves.
Kiplinger's energy outlook predicted gas prices to rise. While we enjoyed lower prices at the pump for a hiccup, it appears costs are back on the upswing, with a $3.11 gallon average.
Auto insurance premiums are soaring, and, as the Kiplinger Letters team reported, new cars that feature advanced safety systems can have higher insurance rates because those systems cost more to replace in the case of an accident. There are, though, ways to save on insurance by comparison shopping:
On the flip side, however, there's always the EV tax credit if you choose to get an electric vehicle. And if you're not comfortable getting a new car quite yet with prices as they are, you can at least rest easy considering keeping a car longer is sometimes better for the environment anyways, if you don't drive all that much, according to Outside magazine.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Alexandra Svokos is the digital managing editor of Kiplinger. She holds an MBA from NYU Stern in finance and management and a BA in economics and creative writing from Columbia University. Alexandra has over a decade of experience in journalism and previously served as the senior editor of digital for ABC News, where she directed daily news coverage across topics through major events of the early 2020s for the network's website, including stock market trends, the remote and return-to-work revolutions, and the national economy. Before that, she pioneered politics and election coverage for Elite Daily and went on to serve as the senior news editor for that group.
Alexandra was recognized with an "Up & Comer" award at the 2018 Folio: Top Women in Media awards, and she was asked twice by the Nieman Journalism Lab to contribute to their annual journalism predictions feature. She has also been asked to speak on panels and give presentations on the future of media and on business and media, including by the Center for Communication and Twipe.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
Quiz: Test Your Knowledge of the OBBB, Wealth Transfer and Early Retirement
Quiz The financial professionals who contribute to Kiplinger's Adviser Intel recently wrote about the OBBB's impact on retirement, how to ensure your wealth passes to your family and early retirement questions.
-
T-Mobile's Free iPhone 17 Deal: A Smart Switch or a Hidden Catch?
Receive a free iPhone 17 when you switch to T-Mobile. We'll explain whether the deal is worth it.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Confused About the New COVID Vaccine and Medicare? What You Need to Know
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
How to Plan Your First International Trip After Retirement
Retirement paves the way for a world of exciting (and intimidating) experiences. An overseas journey can be an ideal way to embrace this new phase of life.
-
My First $1 Million: Retired Magazine Editor, 70, Boise, Idaho
Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.