Millions of Americans buy new cars each year, adding to the hundreds of millions of vehicles on the road across the country. But with vehicle prices on the rise and auto loan rates at their highest level in years, sales have significantly declined in the 2020s.
Meanwhile, despite some changes in the market, including a rising number of electric vehicle sales and a growing market for online vehicle purchases, top auto brands such as General Motors and Toyota continue to headline the market.
The average selling price of a new vehicle in 2023 was more than $47,000, up 32% from five years earlier.
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In 2023, there were 15.5 million new light vehicles sold in the U.S. in 2023, down from a recent peak of 17.5 million in 2016.
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As of June 2023 in the U.S., there were 16,839 franchised light vehicle dealerships.
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The top-selling vehicle in the first half of 2024 was the Ford F-Series, with more than 350,000 trucks sold in the first six months of the year.
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New car statistics
New car sales in the U.S. have fluctuated throughout the 21st century, dropping during economic recessions and surging in stronger economic times.
Despite a recent decline in sales, accompanied by a steep rise in prices in the early 2020s, new car dealers have continued to grow their business. As of 2023, the new car dealer market is valued at more than $1.2 trillion.
On average, how much does a new car cost?
The average price of a new car has surged in recent years, rising from a cost of more than $34,000 in 2016 to $47,000 in 2023.
The gains have primarily been concentrated in the early 2020s, as a semiconductor microchip shortage and other supply chain disruptions have limited the number of available vehicles.
Interest rates on auto loans have also spiked, contributing to higher payments on vehicles. The typical interest rate on a 60-month new car loan has climbed from under 4% in late 2021 to nearly 8% as of June 2024.
Another measure of new vehicle prices, the Consumer Price Index (CPI), highlights the recent growth in car prices compared to the rest of the 21st century. Between January 2000 and January 2021, the CPI for new vehicles increased by 4.2%, while it skyrocketed 19.2% between January 2021 and June 2024.
How many new cars are sold annually?
In 2023, there were more than 15.5 million new cars sold in the U.S., a jump from less than 13.8 million unit sales in 2022.
After the disruptions to the vehicle market during the COVID-19 pandemic, the auto sales market continues to rebound. Latest estimates from May 2024 suggest that auto sales will surpass 16 million in 2024.That’s still down from recent peaks of roughly 17 million or more between 2015 and 2019.
What are the best-selling new cars?
In the U.S. in the first six months of 2024, vehicles from the Ford F-Series, including the F-150 and new F-150 Lightning, were the top-selling automobiles with more than 352,000 models sold.
The F-Series has supported one of the top manufacturers in the country. In 2023, Ford was the third highest-selling manufacturer in the U.S., with nearly 2 million vehicles sold. Toyota (2.2 million sold) and General Motors (2.6 million sold) were the only two companies leading Ford atop the list of manufacturers.
Along with the Ford F-Series, the top-selling models of new vehicles sold in the U.S. were:
New car dealers by state
There are nearly 17,000 franchised car dealers across the country.The greatest number of dealerships are located in California (1,318), Texas (1,256) and Florida (911).
Dealers appeared to be more concentrated in Vermont, where the average sales per dealership in the first half of 2023 were less than $16,000, and less concentrated in Oklahoma, where the average dealership had more than $81,000 in sales during the same period.
What is the life span of a new car?
A new car can last upward of 200,000 miles — an equivalent to roughly 12 years. That’s an improvement from recent history when a new car might typically be expected to last eight years and 150,000 miles.
Depending on the model, the longevity of a vehicle could run longer, with some advanced vehicles and electric cars running for up to 300,000 miles.
The life span of a vehicle also heavily depends on maintenance, while other factors such as the make and engine will impact how long your vehicle can stay on the road.
FAQ
Are new car sales declining?
After steeply dropping from 2020 to 2022, new car sales are rebounding. While sales plummeted from more than 17 million in 2018 to less than 14 million in 2022, sales are expected to surpass 16 million in 2024.
How often do most people get a new car?
The typical American keeps a new carfor 8.4years, according to a study by the automotive research firm iSeeCars, but a wide variety of cars are more likely to be kept longer such as sports cars.
Is 2024 a bad time to buy a car?
Whether buying with cash or via loan, 2024 is a costlier time to buy a new car than ever before. In 2023, the average price for a new car in 2023 was $47,000, a 32% gain from 2018, while auto loan rates were almost 8% as of June 2024, more than double the rate from 2021.
What is the average price of a new car?
In 2023, the average selling price of a new vehicle was $47,000.That’s up from less than $35,000 in 2016. Prices have continued to increase each year, but the gains have been most significant during the early 2020s, as supply chain disruptions have squeezed the vehicle market.
References
- Carlier, M. “New vehicle average selling price in the United States from 2016 to 2023.” Statista. Evaluated July 20, 2024.Link Here
- Carlier, M. “Light vehicle retail sales in the United States from 1976 to 2023.” Statista. Evaluated July 20, 2024.Link Here
- “NADA Data 2023.” National Automobile Dealers Association. Evaluated July 20, 2024.Link Here
- Ireson, N. “The 25 Best-Selling Cars of 2024.” Kelley Blue Book. Evaluated July 20, 2024.Link Here
- “New Car Dealers in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029).” IBISWorld. Evaluated July 20, 2024.Link Here
- Querol Cumbrera, F. “Interest rates on 60-month new car loans in the United States from February 2014 to April 2024.” Statista. Evaluated July 20, 2024.Link Here
- “Consumer Price Index for All Urban Consumers: New Vehicles in U.S. City Average.” Federal Reserve Bank of St. Louis. Evaluated July 20, 2024.Link Here
- “USA - Automotive Sales volume, 2024.” MarkLines. Evaluated July 20, 2024.Link Here
- Carlier, M. ”Light vehicle sales in the United States between January and December of 2022 and 2023, by manufacturer.” Statista. Evaluated July 20, 2024.Link Here
- “Understanding the Average Lifespan of a Car.” Cascade Collision Repair. Evaluated July 20, 2024.Link Here
- Blackley, J.“How Long Do People Keep Their Cars?” iSeeCars. Evaluated August 16, 2024.Link Here
