As somebody who’s planning to purchase a brand new automobile by 2025, I’m having second ideas. With the typical new automobile worth at nearly $50,000, it looks as if solely the wealthy should buy new automobiles in the present day!
Give it some thought. In the event you comply with my 1/tenth rule for automobile shopping for, it’s worthwhile to earn $500,000 to purchase the typical new automobile. Nonetheless, a $500,000 family revenue is the beginning of a high 1% revenue!
Even when a brand new automobile purchaser violates my 1/tenth rule and spends 20% of their annual gross revenue on a automobile, that also means they earn $250,000 or extra a 12 months.
Beneath is the brand new automobile common transaction worth chart by Kelly Blue Guide via January 2023. As you’ll be able to see, the typical transaction worth is $49,388, up 5.9%, or $2,768 from a 12 months in the past.
In distinction, the typical worth of a used automobile is about $27,000. A $22,388 unfold between the typical new automobile worth and common used automobile worth is critical.
Proudly owning A New Automobile Is An Indicator Of Wealth
Based mostly on the typical new automobile worth in 2023, proudly owning a brand new automobile is one indicator of wealth. In the event you need extra standing, then personal a mean new automobile! Individuals may deal with you with extra respect.
Nonetheless, for those who consider in Stealth Wealth, then proudly owning the typical new automobile isn’t going to occur. You don’t wish to appeal to undesirable consideration within the land of envy and thieves. Because of this, you rationally drive an older automobile that’s inexpensive.
In fact, you might additionally purchase a cheaper-than-average new automobile, like a Honda Civic for $25,000 and never be thought-about rich. All of it will depend on your age when the brand new automobile is bought.
In the event you’re shopping for a brand new Honda Civic for $25,000 at age 25, you’re thought-about wealthy. However for those who’re shopping for a brand new Honda Civic at age 60, you’re thought-about comparatively frugal. In any case, the median revenue will increase with age.
Therefore, for those who’re shopping for the typical new automobile in the present day, hopefully you’re over 50 years previous and/or have your retirement financial savings squared away. In any other case, chances are you’ll be working for for much longer than you want.
New Automobiles In every single place Is A Bullish Indicator
Sadly, I drive between 40 – 100 minutes a day attributable to faculty and sports activities actions. I dislike driving, however there are not any environment friendly transportation alternate options for teenagers.
I at all times discover new automobiles in every single place once I’m driving. And every time I see one, I multiply the estimated automobile worth by 10 to reach on the driver’s potential family revenue. I’m in awe of how there are such a lot of high-income households.
Rush hour site visitors can be unhealthy in San Francisco. Even with the work-from-home motion gaining recognition within the Bay Space, site visitors continues to be horrible.
However in the future, to assist my temper, I modified my mindset.
As a substitute of getting irritated on the super quantity of metropolis site visitors, I began to get impressed. Heavy site visitors means enterprise is booming! And when enterprise is nice, meaning I ought to be capable of earn extra passive funding revenue to remain free.
Go site visitors jams! Drivers who double park on busy streets rock!
The media likes to concentrate on doom and gloom as a result of unfavourable tales get extra consideration. Nonetheless, for those who sit in site visitors day by day as I do, you’ll rapidly notice the economic system is doing simply nice.
The typical new automobile worth of just about $50,000 isn’t sustainable if there isn’t demand. And demand isn’t sustainable if family incomes usually are not concurrently rising.
Possibly Fools Are Additionally Shopping for New Automobiles
Sure, the wealthy are doubtless the principle folks shopping for new automobiles. However perhaps fools are shopping for new automobiles as effectively?
In any case, the typical month-to-month fee for a new automobile has risen to a report $777, practically doubling from late 2019, in response to Kelley Blue Guide. Even used fashions have climbed to $544 a month in automobile funds on common.
Nonetheless, name me naive, however I don’t suppose a rational American seeking to obtain monetary freedom would ever spend a lot cash on a brand new automobile. To suppose the typical American is irrational is to additionally suppose the typical American is a idiot.
And we ain’t no fools!




Everyone knows new automobiles have the steepest depreciation curve through the first three years. Additional, saving and investing aggressively are musts to realize monetary freedom.
Given 70% of Individuals are disengaged at work, it additionally means 70% of Individuals don’t wish to be slaves to their jobs ceaselessly.
In the event you hate your job, it is unnecessary to make use of a big chunk of your financial savings or tackle a $777 month-to-month fee to purchase a brand new automobile.
New Automobiles Priced Round $50,000
Given solely the wealthy should buy the typical new automobile, here’s a listing of the highest-rated new automobiles priced round $50,000. This manner, we will rapidly establish who’s wealthy and who will not be!
- Lexus ES
- Audi A4, A5, S3, A6
- Volvo V60, XC60, S60
- Volvo XC60
- Volkswagen Arteon
- BMW 2, 3, 4 Collection, I-4
- Acura TLX
- Tesla Mannequin 3, Mannequin Y
- Hyundai Genesis G80, GV80
- Mercedes Benz C-Class
- Kia Stinger
- Cadillac CT5-V
- Nissan Z
With taxes and charges, a few of these automobiles are pushing $60,000. Right here in San Francisco, many of those new automobile fashions are a dime a dozen, particularly the Tesla Mannequin 3 automobiles.
Even my softball acquaintance drives a Mannequin 3. Despite the fact that he doesn’t make $500,000+ as an educator, he did amass an nearly $1 million place in Tesla inventory on margin. Therefore, folks shopping for the typical new automobile have monetary assets apart from their incomes.
There’s extra wealth on the market than we all know.
Ideas About Shopping for A New Automobile For My Household
The rationale why I’m seeking to purchase a brand new automobile in 2025 is as a result of my Vary Rover Sport shall be 10 years previous by then. Primarily attributable to security, I believe the excellent size of time to personal a automobile is when the automobile hits 10 years previous.
Security options are at all times enhancing yearly. Automobile engineers aren’t simply twiddling their thumbs every year gathering a paycheck. Given I’ve to move kids, I’m not prepared to drive a automobile a lot older than 10 years previous.
I’ve pushed a lot older automobiles earlier than. And similar to with proudly owning rental properties, one thing at all times comes up.
Listed below are a few of my previous automobile failure examples:
- Timing belt on my 15-year-old Toyota Corolla snapped in the future.
- Brakes stopped working in my 18-year-old 1989 BMW CSI whereas pulling right into a Greatest Purchase parking zone
- Engine in my 12-year-old 1997 BMW M3 began lurching as a result of the transmission was failing
The spare donut tire in your automobile ought to be changed each 10 years given rubber hardens and cracks. In the meantime, airbags won’t work correctly after 10-15 years.
If a automobile malfunction had been to trigger an accident and injure my passengers I’d by no means forgive myself if I might have afforded a safer automobile. The finest time to personal the nicest automobile you’ll be able to afford is when you’ve got kids.
I’m certain I might drive my automobile till it’s 15 years previous to save cash given I solely drive about 6,000 miles a 12 months. Nonetheless, it’s most likely not definitely worth the danger given I can afford to purchase a brand new automobile sooner.
Will In all probability Nonetheless Purchase A Barely Used Automobile




Proudly owning a brand new automobile is good. Who doesn’t love the brand new automobile scent?! However the depreciation on a brand new automobile is simply too dramatic to abdomen. As a substitute, I’ll most likely purchase a two-or-three-year-old automobile to save cash. Higher psychological well being is without doubt one of the finest causes for driving an older automobile.
Personally, I like the brand new design of the newest Land Rover Vary Rover. Too unhealthy it prices about $150,000 reasonably geared up! If I actually wish to experience in model, I finest begin writing extra bestselling books.
It actually looks as if solely the wealthy can afford to purchase new automobiles in the present day. Are you one in every of them? In the event you aren’t, how did you afford to purchase a brand new automobile at in the present day’s astronomical costs? Please reveal your monetary secret!
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