According to Carscoops, the growing inflation rate, the increasing price of new cars, and the supply of affordable cars is also shrinking, meaning that owning a car is affordable for most people.
The number of Americans gradually became distant. Since 2020, new and used car prices have both grown significantly. For vehicles rolling off the assembly line, the average retail price is now 30% higher than before the pandemic. For used cars, the average price is now up 38% compared to pre-pandemic times.
Fortunately, in 2023, growth slowed and prices were only 1% higher than a year earlier. However, the average price of a new car today is $50,364, while the average price of a used car is $31,030.
“Simply put, cars have become more expensive,” said Joseph Yoon, consumer taste analyst at Edmunds. In November 2019, the average transaction price for a new vehicle was $38,500. In November 2023, that number increased to $47,939.”
Both new and used car purchases are expensive for drivers.
According to a previous study by Market Watch, Americans need a total household income of at least $100,000 to buy a new car if they follow general budgeting principles and practices.
While there is no perfect formula, a common view among financial experts is that customers should spend no more than 10%-15% of their monthly income on car-related expenses, including everything. from billing to insurance and maintenance.
Based on this criterion, 60% of households and 82% of individuals in the US cannot currently afford to buy a new car. Another challenge to this affordability is Americans’ preference for more expensive crossovers, pickup trucks and SUVs.
“Car buyers’ preferences have also changed significantly towards large trucks and SUVs in the past 10 years or so,” said Mr. Yoon. They are even more interested in high-tech amenities, amenities in the form of cameras, sensors, radar and large infotainment screens.” As a result, fewer low-cost cars are available, pushing the average price of new cars higher.
Average price of new SUV/Crossover to increase in 2023 (Source: Money Geek)
The biggest factor, however, may be the pandemic. New car prices skyrocketed during that time due to supply problems. Difficulties in producing new cars mean demand skyrockets, leading to an increase in the used car market. Although the normalization of supply has stemmed the growth of vehicle prices, prices are not expected to decrease significantly in the near future.
Realizing this, Vietnamese auto brand VinFast decided to bring the low-cost car model VF 3 to the US market.
American car market expert Duke Hale, who is also an advisor to VinFast in the US market, commented that the A-class car segment in the US has a lot of space after models like the Fiat 500 or Chevrolet Spark stopped selling. joint. That makes the VF 3 model a bright candidate to meet customers with a spending level of about 20,000 USD (about 490 million VND).
Also according to Mr. Duke Hale, there were about 100 distributor/dealer representatives at the event organized by VinFast. He described: “They like the entire product range, but especially with VF 3, I have to be honest, there is Nearly 100% response. They really like the VF 3 and the reason is probably the price under $20,000.”
He said that VinFast’s mini car model has an advantage that no other car company can do: Cheap price. Assuming an estimated price of 20,000 USD, he believes that VF 3 could also qualify for an additional 7,500 USD in federal support, helping consumers only need to spend 12,500 USD (more than 300 million VND) to get it. can own. With an extremely attractive price, VinFast VF 3 is promised to make a difference in the world’s leading demanding market.
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