Among the many things costing more these days, our automobiles create substantial sticker shocks–new or old cars. Regardless of age-old repairs or looking for a slightly more improved ride, consumers discover the inconvenience of car shopping.
Based on vehicle data from Edmunds via Business Insider, “annual out-of-pocket expenses for new cars can range between $29,247 to $36,404 over five years.” That translates to approximately $7,612 annually, almost double what it cost a decade earlier, $4,191.
Due to rising vehicle costs and supply and demand issues causing parts to take so long to get to your car (much less the price to be installed), consumers are considering keeping their old cars much longer than before. Approximately 70% of vehicles on the road are six or more years old, far beyond many manufacturer warranties. S&P Global Mobility, via AP, shares that the average vehicle age on the road today is a record high, 12.6 years old.
The National Desk, a pioneering online-only outlet, contacted Beyond Finance to speak with our client financial therapist Nathan Astle, CFT-I, about the price of mobility in America. He was a greater subject matter expert than any of us realized.
Congratulations to Nate for being the interviewee, providing excellent insight, and practicing what he preaches. We can always count on him!