Median price of new cars?

I keep reading the average new car sells for over $30,000 now, but I sure see a lot more newer less expensive cars on the road than more expensive, unless my guesses as to sales price is wrong. I can accept the number as an average, but that makes me wander what the median price is. That would give a much better idea about what most people are actually spending.

I did some searching on the web for an answer, but all I'm finding is averages. Anyone here in the know that could enlighten me?

Is $30,000 the average of all models offered (which isn't very useful) or all cars sold? Seems a bit high for all cars sold.

I got the impression thats actual selling price. Thats why I'm trying to find the median. Its got to be a significantly lower number, based on what I see on the street.

I got the 08 Focus for 12k and am sad to see these prices becoming less and less likely. That's why I stick to the used market. Old cars can be more fun anyway.

I was shopping smallish cars a while back, and you'd be pretty hard pressed to find a decent car for under 18K out the door. Look at all of the SUVs and trucks that are selling well into the 40s, and you'll see where that average number comes from.

I think you'll find the actual MSRP hasn't moved as much as people have perceived it to compared to Inflation over time.

Edmunds.com says the cheapest 2008 Focus was a 2 door S model for 14,395. Adjusted for Inflation that would be 15,614. A 2013 4 door S model is 16,310 or 4% above inflation. This is assuming the 2008 model is comparable to the 2013 model in all ways. A 2008 4 door S was 14,755 or 16,005 adjusted for inflation leaving only 1.9% increase over inflation rate.

Your right it's unlikely you'll find a deal on a 2013 focus for 12K new, but I would think 13-13.5 is not impossible.

A camry with a v6 and a sunroof stickers at over $29k. Not much of a stretch to see 30k as an average when you start throwing in SUVs, audis, bmws, mercs, caddies into the mix.

...and does that avg. car price exclude all other vehicle types, such as pickups?

In reply to nocones:

Inflation can suck it. I haven't had a raise in years.

I'm perfectly willing to believe the average transaction price is over $30K. The median would be very telling, though. Not to flounder my own thread, but as an amateur economist, the difference between the two could give a good idea of the true state of the auto industry and a better idea of the overall economy.

I believe it and I wonder how people are doing it looking at some scary stats of the median family savings, 401K, etc. But then when you can get car loans for up to 7-8 years why not right? A lot of people probably just look at the monthly payment and don't think long term and the larger amount of interest. I would not be too quick to say the economy is doing better. Require a 20% down payment and only a 3-4 year loan option and see how well new cars would sell. I could be wrong, but that's my thought. Also, all this high tech stuff and safety features don't help with the increased pricing. I know there are other factors involved. Still, longer loan terms are helping sales. I was reading an article the other day that in my state, wages where about $1 an hour higher in 2000 than in 2011. All that being said, DEPRECIATION ROCKS!! I'll stay with used.

http://www.usatoday.com/story/money/cars/2013/10/28/long-term-car-loans/3191819/

Fletch1 wrote: I believe it and I wonder how people are doing it.... But then when you can get car loans for up to 7-8 years why not right?

You answered your own question.

That said, with rock bottom interest rates it's not that terrible of a way to go. Cars can easily last 150K now, so even at average 15K/year you're at 10 years of ownership before 150K, and it'll be paid for well before then. Put the next "payments" into deferred maintenance, timing belt, etc. and it'll roll on.

Nobody actually keeps them that long (gotta stay new and keep up with the jones') but mathematically it's not a terrible strategy.

In reply to xflowgolf:

Yeah, I meant to do that.

Affordability is down ( How much a car costs vs. typical income), probably even based on current low interest rates. Longer loan terms are certainly helping people by more expensive cars at the same monthly payment as they would have bought their previous car. That doesn't worry me too much, since cars (in general) have never been so reliable, so they can be expected to last a lot longer.

Leases also seem to be up significantly, especially for non-luxury cars, which means people are cutting their monthly expenses that way, but this could be problematic when the lease runs out, depending on the state of the economy, and what interest rates are.

The median price could give a good idea as to whether the two factors above are having enough of an effect to be driving transaction prices up, or are they only part of the factor. If the median price is similar to the average, then it's safe to assume a combination of longer term loans, increased leasing, and some people just paying more of their income ( as a percentage) to buy a car than they had in the past. If the median is significantly lower than the average, that could indicate an increasingly larger subset of people are buying more basic transportation vehicles than in the past, in order to keep their expenses down to the level they have been as a percentage of income, while it could also indicate that many those who are going for leases or longer term loans may be stretching their budgets more to reach for a more aspirational car. Or it could mean that I'm spending way too much time thinking about this stuff.

I've been wondering this exact thing lately and have never come across a definitive answer. I wonder if the two are actually reasonably close. It's not like income, with top earners at 1000X (or more) the bottom. The most expensive cars, of which there are very few, are really only 10-20X the cheapest.

It's annoying that the two numbers are not easily available though.

xflowgolf wrote:

Fletch1 wrote: I believe it and I wonder how people are doing it.... But then when you can get car loans for up to 7-8 years why not right?

You answered your own question. That said, with rock bottom interest rates it's not that terrible of a way to go. Cars can easily last 150K now, so even at average 15K/year you're at 10 years of ownership before 150K, and it'll be paid for well before then. Put the next "payments" into deferred maintenance, timing belt, etc. and it'll roll on. Nobody actually keeps them that long (gotta stay new and keep up with the jones') but mathematically it's not a terrible strategy.

you try to keep up with this Jones, and you can make a 10 yr loan work for you …

OP, where do you live? Go visit a high-income area and its pretty easy to see how that number is skewed. I just walked around for lunch in Reston, and the number of $20k cars was greatly exceeded by $50-80k cars. When you do a weighted average, it bumps the price up pretty quick.

In reply to ProDarwin:

I agree. It only takes one 60k Lexus SUV sold per 3 20k Chevy Cruzes to make a $30,000 average. Thats why i really want to see the median number. Is it 25000, which would indicate the middle is driving around in moderately equipped Camrys, is it 20000, indicating Focuses, Corollas, and Civics, or is it even lower?

Edit: I'm in the southwest Ohio area. Cars around here tend towards compacts. People tend to put more into trucks near me.

eastsidemav wrote: Is it 25000, which would indicate the middle is driving around in moderately equipped Camrys, is it 20000, indicating Focuses, Corollas, and Civics, or is it even lower?

Well, you're talking about the median new car owner... the average age of a registered car in the U.S. is 11 years.

Just bumping this one up, in the hopes anyone might see it and know where to find the info. Multiple trips to google have been unsuccessful for me. I find it hard to belive this kind of info isn't out there somewhere.

I keep hearing about these mythical 'new' cars... you mean they sell cars that cost more than $2013?!?!

I don't think google thinks I know the difference between Median and Average.

Google: Oh you asked for "median price of new cars?" Let me show you a bunch of results for "average price of new cars."

fritzsch wrote: I don't think google thinks I know the difference between Median and Average. Google: Oh you asked for "median price of new cars?" Let me show you a bunch of results for "average price of new cars."

Yup. Its making me think the info is just not easily available publicly. Its really annoying seeing dozens of articles on how the MEDIAN income family cannot afford the price of an AVERAGE-priced car, so they are kind of comparing apples and oranges.

Some euro guy said: Mr Setterfield said: "Take the median list price in our database of £25,425 and a manufacturer selling a vehicle for this price in September last year would have returned 32,086 euros

http://www.stokesentinel.co.uk/Motors-advantage-UK-offers/story-19986160-detail/story.html

The best I can do. Different market, different cars, different money. Almost useless