Are You Keeping An Old Car On The Road Because New Cars Are Too Expensive?

The average American can't afford a new car. The average new car transaction price has recently ballooned to an all-time high of nearly $52,000 at a time when most consumers don't have $1,000 in savings. Jobs are down, wages are down, the value of the dollar is down, and prices are way up. With utilities, insurance, groceries, and gasoline prices exploding this year, most of us haven't got, as my Grandfather would frequently say, a pot to p*ss in or a window to throw it out. 

How are Americans coping with an affordability and savings crisis? Many of us are foregoing a new car purchase, with new car sales down 3.6% from last year. The decrease in new car sales matches up with an increase in the average age of a registered passenger car on the road today, getting older than it ever has been, reaching a bonkers 14 and a half years. 

It's worth noting that while the average age of cars on the road is going up, and cost is a big part of that, it is a testament to the longevity and durability of vehicles in the modern era. If you bought something in 2012, you probably got something worth hanging on to. It's modern enough to be comfortable and efficient, but it's likely relatively easy to work on, maintain, and keep alive. And it's good to keep in mind that a car from 2012 is the average, meaning about half of the population is driving something older than that. 

Whether you can afford a new car or not, are you shopping for one right now? Or do you plan to keep your older car on the road as long as it lasts? Maybe, like me, there's just nothing on the new car market that has captured your interest enough to be worth the monthly payment. Sound off in the comments below with your thoughts on new-car purchases versus keeping old cars alive, and we'll discuss it. Then, I'll pick a few of my favorite responses to recap for everyone else next week.

I've only ever purchased one new car: a Buick Regal TourX. It was a great car, and it did a lot of incredible things, but we sold it at 100,000 miles and haven't looked back. Now our newest car is my 2016 Audi A3 e-tron plug-in hybrid that recently crossed the 100,000 mile threshold itself. This car and my wife's erstwhile daily driver 2013 Porsche Cayenne diesel are barely newer than the average car, but amongst our fleet, they're positively modern. Add in the recently purchased 2006 Mazda5 manual (destined to replace the Cayenne once it sells), my 2001 Porsche 911 Turbo, 1996 Dodge Neon ACR, 1990 Cadillac Allante, and 1976 Porsche 912E, and we have a fleet average age of 26 years. Once we move the Cayenne out of here, that number will jump to nearly 30 years. 

It was nice to have a new car with a warranty for a while, but it didn't make sense for our finances. The $490 per-month payment, plus the cost of insurance, fuel, and maintenance, didn't really add up to a fulfilling experience. And that was with a below-average $36,000 transaction price and 0% APR financing. These days neither is readily available, and average monthly payments have shot up to over $700. I think I'll stick with my older cars. 

While I could theoretically afford an extra $700 per month for a car payment, it would put a serious cramp on our lifestyle that just isn't worth it. Even with the maintenance on seven older cars, we aren't coming close to that kind of monthly expenditure. Plus, there's just so little on the market today that interests me in any substantive way.