According to a recent article from Automotive News, the average transaction price for a new vehicle in the U.S. has now topped $50,000! A record high that’s leaving many Americans rethinking their options. What’s more alarming is that this number continues to rise, despite higher interest rates and the increased availability of new inventory.
The data shows that consumers are financing new cars with average monthly payments exceeding $700, and many are stretching out loans over seven or even eight years just to make it work. Add in rising insurance premiums, and it’s no wonder more and more people are asking: Is buying a new car really worth it right now?
At Honest Wrenches, we hear this often:
“My repair bill is close to what my vehicle is worth, should I just buy something else?”
And our answer? Not necessarily.
Here’s the thing: a vehicle’s “book value” doesn’t always reflect its true value to you. If you’ve taken care of your car, invested in maintenance, and know its history inside and out, that vehicle might be far more valuable than anything you could replace it with, especially in today’s inflated market.
Let’s break it down:
Say your vehicle is worth $5,000 and needs $5,000 in repairs.
While that might feel like “it’s not worth it”, consider this:
- You already know the vehicle’s maintenance history
- You’ve likely already replaced other key components over time
- You’re not taking on a $30K–$50K loan with a 6%+ interest rate
- You’re not inheriting someone else’s problems in a used car with unknown upkeep
The Automotive News article also highlighted that the used car market isn’t much better, with used car prices still significantly above pre-pandemic levels and interest rates averaging 11.9% on used car loans. That means even a “budget” used car comes with big costs and big risks, especially if it hasn’t been maintained as well as your current ride.
So, what’s the smarter move?
If your vehicle is structurally sound and has been maintained well, investing in needed repairs can give you years of reliable service at a fraction of the cost of buying new. We’ve seen countless customers save thousands by making the strategic decision to repair and keep their car on the road.
At Honest Wrenches, we’re here to help you make the decision that’s best for you. That includes honest advice, transparent pricing, and a commitment to keeping your vehicle safe and reliable.
Before you sign on the dotted line for a $700-a-month payment, let’s take a look at your current ride. We’ll walk you through the repairs, the long-term cost comparison, and whether keeping your vehicle is truly the best move. No pressure—just honest advice.
Because that’s how service should be.
Link for reference: https://www.autonews.com/retail/an-retail-average-prices-top-50k-0414/?fbclid=IwY2xjawJqKMJleHRuA2FlbQIxMAABHn4k4debqms2jUNfEEGZJYUF6olv39iZv8DHmi7zJjaEUDaR3jznqRFDgFLO_aem_curdc3dfb6YbSeF9XdfXPQ