Cost of owning a new car climbs

The cost of owning a new car rose 5% in the last year, according to the 2021 AAA Your Driving Costs Study. Costs increased across all categories, bringing the average expenditure up to $9,282 a year, or $773.50 a month.

AAA reviewed 45 top-selling sedans and SUVs, factoring in six expense categories: fuel, maintenance, full-coverage insurance, license/registration/taxes, depreciation and finance charges.

The biggest driver in the increase was longer loan terms, combined with higher purchase prices, AAA reported. Consumers paid 24% more in interest on new car loans this year, the study found, at least partly because more borrowers chose 72- or even 84-month loans. AAA estimates that total finance charges increase by $1,000 for every 12 months a loan is extended.

Additionally, AAA found that:

  • Average insurance costs increased by $5.
  • Buyers paid $14 more in licensing, registration and taxes.
  • Depreciation rates slowed down, so cars retained their value.
Read More

Car Buyers Move Online To Eliminate The Dealer Jerk-Around, Buyer Satisfaction Climbs to an All-Time High

PHOTO (select to view enlarged photo)
Look How Happy He Is

Editor’s Note: Now what does this say about historic dealer antics…hmmm

Atlanta, Jan. 25, 2021 – There was a time when consumers rated the car-buying process roughly on par with a stubborn root canal. But those days are passing into the rearview mirror now, as auto dealers move more steps of the retail process online resulting in consumer satisfaction hitting an all-time high, according to the new Digitization of End-to-End Retailing (DoEER) study by Cox Automotive.

With buyers spending less time at dealerships and benefitting from more efficient, digital retailing processes, those who were “highly satisfied” with the overall shopping experience reached 72%, up from 60% in 2019. The average vehicle buyer now visits only 2 dealerships in the vehicle buying process, down from 2.7 in 2016.

“According to our data, car buyers have never been happier,” notes Cox Automotive Vice President of Research

Read More