The average new car cost more than $40,000 for the first time in history at the end of 2020, a shocking increase from the $34,000 record we saw in 2019. According to USA Today, those rising transaction prices were accompanied by bigger down payments and more borrowing, with the average new car costing $40,170 in the fourth quarter of the year.
In Q4 2020, the average buyer put down $4,734 – almost a record – and financed $35,373, numbers that are up significantly over the same time period in 2019. What’s more, auto sales industry-wide were down, with juggernaut Toyota seeing an 11.9-percent sales decrease compared to 2019. So what kinds of cars are driving average prices up?
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