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.
-
The Shutdown Standoff Is Heading for Its Next Big Test
A key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
The Shutdown Standoff Is Heading for Its Next Big Test
A key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
I Want to Retire, but I Have to Keep Working so My Adult Kids Have Insurance
It's a tricky period when your adult child is under 26 but needs health insurance. We ask financial experts for advice.
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
I Work From Home, and These Are the Best Home Office Upgrades From October Prime Day and Anti-Prime Day Sales
Spruce up your office for less with these sales. You could also qualify for tax credits with some upgrades.
-
Should You Replace Your Financial Adviser with AI?
Financial Help Many people already ask AI for financial advice. But is it good enough to replace a human financial adviser?
-
Savvy Savings Moves to Make Now – Or You Could Lose Thousands
Despite a rate cut and inflation, these moves can still help you reach your savings goals quickly.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
A Comfortable Retirement is About More Than Money
When it comes to a happy retirement, money can’t buy these things.