In the US, there are almost 229 million drivers. As you might already know, our nation is heavily dependent on cars, and having one can make a huge difference in your quality of life.

But whether you’re about to buy your first car or your 5th, the costs are admittedly very high. And as the years go by, the average car cost changes, so you’ll have to do research every time you make a purchase.

So how much does a car cost on average nowadays? Read on to find out!

How Much Does a Car Cost?

Let’s start off with the average cost for a brand new car: expect to pay around $47,000. Of course, the exact car cost you’ll pay will depend on several factors, so let’s take a look at them below.

New vs. Used

Of course, buying a used car will save you some money. On average, you’ll pay around $27,500 for a used vehicle. The older it is, and the worse shape it’s in (i.e. past accidents and higher mileage), the lower its value.

Electric Vehicles (EV)

In general, EVs will cost more than traditional vehicles. This is because not only are they newer, but they also use more technology, which costs more to create.


Obviously, luxury brands will have a much higher price tag than more economic brands. You may pay 2 or 3 times the price if you opt for the former.

Car Size

The smaller the car, the cheaper it’ll be. A large SUV will cost much more than a compact hatchback.

Chip Shortage

In recent years, there’s been a semiconductor chip shortage, so automotive companies were limited in how many vehicles they could push out. As a result, they turned away from lower-cost models and focused on ones that’ll rake in more money.

Expect prices to stay high until the chip shortage can be properly addressed.

How to Save Money on a Car

Have these numbers have you feeling dismal and you’re wondering about how to afford a car? Then here are some car savings tips you should try.

Opt for small cars from reputable economy brands. Buying used is a good route too, especially if you know how to do minor repairs.

Another way to lower your car cost is to buy from private sellers. They’ll usually have lower prices than dealerships.

Lastly, you can always try sweepstakes like The chances are low for winning, but if you do, you’ll have only paid a few dollars for a vehicle!

Get Yourself a Car Without Breaking the Bank

So how much does a car cost? For a new one, the average is $47,000; for a used one, $27,500.

While these numbers are high, there are ways to lower your cost and get a car affordably. So explore all possible avenues and you’ll be in a new ride in no time!

If you want more life tips, then check out the rest of our blog page now.