The high cost of new cars has been a thing with buyers—and automotive investors—for a few years, since Covid-19 disrupted the global economy.
The average cost of a new car in the U.S. is roughly $47,000, up about $10,000 from prepandemic levels. Barron’s looked at wages, interest rates, and new-car prices to calculate a new-vehicle affordability index. Our index averaged about 56 in the second half of 2019. It hit almost 66 in December 2022. Today, the index is at 61—right in the middle of that range.
As dealer inventory and new-car production continue to recover, Lindland sees the new-car market shifting from the seller’s market of the past few years to a “buyer’s market.” Fears of declining profits are one reason GM stock trades for 4.6 times estimated 2024 earnings, down from an average of closer to 6 times over the past few years.
Car Car Latest News, Car Car Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: autocar - 🏆 93. / 67 Read more »
Source: auto123 - 🏆 566. / 51 Read more »
Source: therealautoblog - 🏆 528. / 51 Read more »