If you need to buy a vehicle for 2022, you must decide whether to get a brand-new one or a used one. Prices for both types are higher than ever in the United States, but you probably already know that. What you may not know yet are the comparative prices this month.
Check out the information we gathered before you take your pick. Once you decide and drive your choice from the lot, make sure to take it straight to an auto detailing company for the installation of a paint protection film. Your new treasure must stay protected.
New Car Prices
According to the December 10 report of Kelley Blue Book, the average price of a new vehicle increased this November for the eighth succeeding month, reaching $46,329. This represented a 0.7 percent increase from October to November, equivalent to $393. It is 13 percent or $5,392 higher than the average price in November 2020. The cheapest type of vehicles are subcompact sedans and the average price of these increased by 16.7 percent from November 2020 to November 2021.
More people purchased new sports utility vehicles (SUVs), though. The average price for these in November this year was $45,201. Although the average price of cars was lower at $41,026, their share of sales was only at 21.7 percent. This is almost a record low.
Manufacturers are also producing larger numbers of SUVs compared to cars. This is due to the still ongoing shortage of microchips globally. With a limited supply, it is more profitable for car companies to produce higher-priced vehicles with larger margins.
Demand has increased despite the high prices. As a result, most buyers have willingly paid more than the car manufacturer’s suggested retail price (MSRP) or sticker price. Among luxury vehicle buyers, the average payment was almost $1,000 over the sticker price. Among non-luxury vehicle buyers, the average payment was over $900 above the sticker price. Back in 2019, the scenario was very different as buyers purchased luxury vehicles at over $3,000 below the sticker price.
The prices of vehicles are not expected to stabilize soon because experts predict that the microchip shortage can extend to 2023. Prices can even go higher next year.
Cheapest New Cars in the Market
There are still brand-new cars with an MSRP below $20,000. The Ford Maverick 2022 is a pickup truck that is the smallest truck of the company. It is also the first with a compact unibody. Despite its size, it can carry a load of up to 1,500 pounds and can tow up to 2,000 pounds. It is also the first full-hybrid pickup in the U.S. Its MSRP is $19,995.
The Hyundai Elantra 2021 compact sedan has an MSRP of $19,850. It was awarded by AutoGuide 2021 as the Car of the Year for having the best combination of having a low price and great features. It is also available in a hybrid model, costing more at $23,550.
The Nissan Kicks 2021 crossover has an MSRP of $19,600. The Nissan Sentra 2022 compact sedan has an MSRP of $19,510. The Kia Soul 2022 subcompact crossover SUV has an MSRP of $19,190. The Kia Forte 2022 compact sedan has an MSRP of $19,090.
At the next level, the Hyundai Venue 2022 is the brand’s smallest crossover. It has an MSRP of $18,900. The Subaru Impreza 2022 compact sedan is the cheapest all-wheel-drive vehicle in the country. It has an MSRP of $18,795.
Much less costly is the Hyundai Accent 2022 subcompact sedan, with an MSRP of $16,645. The Kia Rio 2022 subcompact sedan is the cheapest car from the brand, with an MSRP of $16,150.
The Nissan Versa 2021 subcompact sedan is even cheaper, with an MSRP of $14,980. The Versa used to be the cheapest car in the U.S., but it has now been replaced by two other cars. The Mitsubishi Mirage 2022 subcompact sedan only has 78 horsepower and a 1.2-liter engine. It is, therefore, extremely fuel-efficient. It has an MSRP of $14,645.
Finally, the cheapest car in the U.S. now is the Chevrolet Spark 2022 subcompact hatchback with 98 horsepower and a 1.4-liter engine. It has an MSRP of only $13,600.
Used Car Prices
According to Kelley Blue Book, the latest data on used car prices is from October this year. The average used car price was $26,971. According to Fortune, the prices of used cars increased at a much higher rate than new cars, at 39.8 percent from 2019 to 2020. Since then, it has been increasing by as much as $100 to $200 per week.
This was caused by the surge in demand as brand-new cars became more expensive and harder to find. Buyers turned to the used car market instead. Experts predict that if the global microchip shortage persists, prices of brand-new and used cars will continue to rise.
Your Choice
It is up to you to choose a brand-new or used car. If you want a high-end SUV, it would be more affordable than a used car. If you need a sedan, there are affordable brand-new models. In the end, it can all boil down to what you can find in the market.