buying: New cars and trucks: Vehicle ownership costs reach new high, AAA finds - - PressFrom - US
  •   
  •   
  •   

buyingNew cars and trucks: Vehicle ownership costs reach new high, AAA finds

15:56  16 september  2019
15:56  16 september  2019 Source:   usatoday.com

Americans Are Holding Onto Their Old Cars

Americans Are Holding Onto Their Old Cars People just aren’t ditching their rides like they used to. Instead of getting rid of their car quickly, Americans are actually holding onto them longer than ever. A new report from IHS Markit shows that so far in 2019 the average age of vehicles in the United States is 11.8 years, surpassing the previous record. What’s more, the trend is supposed to keep going up past 12 years by the early part of the next decade, and we have technology to thank for that. This means more dated cars are tooling around in cities and on country roads throughout the nation.

The average cost of owning a new vehicle reached an all-time high this year as financing costs jumped, according to a new AAA study. That increase came in part from longer loan terms and higher vehicle prices. The average amount borrowed per new vehicle purchased in August was

AAA study reveals annual new car ownership costs are the highest yet. Small cars , hybrids and AAA says the increase is mainly from rising finance costs such as higher interest rates and longer As vehicles get larger, the costs go up with higher prices, more fuel consumption, and frequently

The average cost of owning a new vehicle reached an all-time high this year as financing costs jumped.

AAA's annual cost-of-car-ownership study, released Thursday, found that a 24% increase in average financing costs on new cars contributed to a 4.9% overall increase in the expense of owning a new vehicle.

Altogether, it costs the average American about $9,282 per year, or $773.50 per month, to own a new vehicle when factoring in fuel, maintenance, depreciation, insurance and borrowing costs, according to AAA. That's up from $8,849 in 2018.

We've Weighed the Pros and Cons of Leasing vs. Buying a Car

We've Weighed the Pros and Cons of Leasing vs. Buying a Car Let's break it down.

New cars on average cost 82 per year over a five-year/75,000-mile period, a 5 percent increase over 2018, says the nonprofit insurance agency. AAA calculated average costs across 45 popular 2019 models in nine categories, including sedans, SUVs, minivans, trucks , hybrids, and pure electrics.

A new report by the American Automobile Association ( AAA ) indicates new car ownership costs have reached its highest levels since the automobile travel firm began tracking costs in 1950. A new car will have an annual average cost of about ,282, or 3.50 per month

The average buyer pays $920 in annual financing costs alone – namely, loan interest – which is up from $744 in 2018. That increase came in part from longer loan terms and higher vehicle prices.

The average amount borrowed per new vehicle purchased in August was $32,590, up 5.2% from a year earlier, according to car-buying advice site Edmunds. The average interest rate was 5.8%, the same as a year earlier, but average loan terms went from 68.6 months to 69.6 months.

Car prices approaching $40,000: But relief may be in sight
Shopping for a new car?: 5 things you should never say to a dealer

Vehicle depreciation is the most significant factor in the average cost of owning a new vehicle, according to AAA. The average vehicle will depreciate by $3,334 in 2019.

The Classic Trucks of the 2019 Woodward Dream Cruise

The Classic Trucks of the 2019 Woodward Dream Cruise It's not all muscle cars—pickups and vans star on Woodward Avenue, too.

While vehicle prices, interest rates, and ownership costs are all at record highs , the auto industry seems to be rolling with the punches. According to Experian, the average loan term for a new vehicle reached a new high this year at 69.17 months. Unfortunately, the AAA found that, on

“ New vehicles offer the latest designs, cutting-edge technologies and warranties that offer peace of mind,” said John Nielsen, AAA ’s managing director AAA ’s annual analysis found demand for sedans has slipped as American appetite shifts to SUVs and pickup trucks . As a result, depreciation costs

Vehicle costs vary widely, depending on the model. In general, the smaller a car, the less expensive it is.

The average cost of a small sedan was $7,114, compared with $10,839 for a pickup.

Related Gallery: Labor Day: These are the top 15 most-American made cars in 2019

New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds
New cars and trucks: Vehicle ownership costs reach new high, AAA finds

The nation's SUV boom played a role in driving costs higher. SUVs, which are more expensive than cars, account for about seven in 10 new vehicle purchases, according to industry analysts.

The Dalai Lama once owned this classic Land Rover up for auction

The Dalai Lama once owned this classic Land Rover up for auction This 1966 Series IIA Land Rover was owned by His Holiness the 14th Dalai Lama, and used as his official vehicle for many years The post The Dalai Lama once owned this classic Land Rover up for auction appeared first on Motoring Research. Read More

CARS .COM — Despite slightly higher fuel costs in 2017 than in 2016, U.S. drivers might be surprised to learn AAA did not point to a specific reason for the slight drop in annual average costs , and three new vehicle Aside from vehicle type, the study also looked at overall long-term ownership costs

Buying and owning a new vehicle costs more in 2019 than ever before, and it’s not just because purchase In its 2019 driving and cost of ownership survey, AAA found that financing costs (interest and Consumers’ heavy shift toward trucks , SUVs, and crossovers is partly to blame, since those

"It’s definitely pulled (the average) up because those vehicles are more expensive to own and operate," said Mike Calkins, principal author of the study for AAA. "Pickup trucks are really big right now, and those are the most expensive vehicle to own and operate by a good margin."

Cost-conscious consumers should hold off and buy a used car that's one to three years old, he said.

"Someone else is eating that $5,000, $6,000 in depreciation that happens in the first few years," but "you're still getting a vehicle that's under warranty," he said.

Another way to save: Buy an electric car, preferably lightly used, Calkins advised.

Of all vehicle categories measured by AAA, electric cars were easily the cheapest to operate at 10.25 cents per mile. Hybrids were next cheapest at 13.46 cents per mile. In comparison, a medium SUV was 22.8 cents, while a medium sedan was 18.45 cents.

Electric cars and hybrids are generally more expensive when purchased new, but they depreciate very quickly, have low fuel costs and have lower maintenance costs, according to AAA.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

This article originally appeared on USA TODAY: New cars and trucks: Vehicle ownership costs reach new high, AAA finds

Read More

Chevrolet Brings Colorado ZR2–Based Infantry Squad Vehicle to the 2019 SEMA Show .
Military Light Transport Could See Active Duty Next YearThe General Motors ISV is all but unrecognizable as a Chevy product, featuring stripped-down bodywork and an ATV-like interior with nine individual seats: two in the front, three in the back, and four additional posts in what would have been a bed. In fact, the ISV only uses the basic platform from the Colorado, mounting a unique passenger and cargo superstructure to that. The ISV is powered by a 2.8L Duramax I-4 and six-speed automatic transmission, producing 186 hp in this iteration.

—   Share news in the SOC. Networks

Topical videos:

usr: 0
This is interesting!