Why is the average so high?
That's a big number, but there's an important detail behind it: $50,089 is the average price of what people actually bought. It is not the starting price of buying a new vehicle.
And that's an important distinction if you're shopping around Clare, Mount Pleasant, Midland or anywhere else in Mid-Michigan.
A big part of it comes down to what Americans are choosing to buy. According to Kelley Blue Book, the average full-size pickup sold for $67,446 in August, while midsize SUVs averaged $50,315. Compact SUVs averaged $37,722, subcompact SUVs $31,149 and compact cars $27,997.
So when you hear "the average new car costs $50,000," it doesn't mean there aren't vehicles well below that number. Expensive trucks and SUVs simply pull the average upward.
That's especially relevant in Michigan, where trucks and SUVs make up a lot of what people actually want to drive.
Does this mean you should buy used instead?
Maybe—but I wouldn't make that decision from a national average.
The better comparison is the actual new vehicle you're considering against the actual used alternatives available to you.
Sometimes a lightly used vehicle gives you a meaningful price advantage. Other times, incentives or financing on a new vehicle can make the gap smaller than you expected.
Mileage, warranty coverage, equipment, interest rate, trade value and how long you plan to keep the vehicle can all change the answer.
That's why I don't love the blanket advice that everyone should always buy new or everyone should always buy used.
Pay attention to the payment, but don't shop by payment alone
Affordability is clearly important right now. Kelley Blue Book says even lower-priced segments moved higher in August, while the average incentive on a new vehicle was about 6.5% of its transaction price.
Your monthly payment matters, but lowering a payment by stretching the term farther isn't automatically a better deal.
Look at the whole picture: selling price, trade value, down payment, interest rate, loan term, and total amount financed.
Two vehicles with similar monthly payments can have very different total costs.
- Selling price
- Trade value
- Down payment
- Interest rate
- Loan term
- Total amount financed
Your trade might matter more than you think
If you already own a vehicle, don't leave the trade out of the conversation until the end.
What you owe versus what your vehicle is actually worth can completely change which option makes sense. A strong trade position can make moving into something newer easier. Negative equity can make waiting or choosing a different vehicle the smarter move.
The vehicle you're buying is only half of that equation.
So is now a bad time to buy a vehicle?
Not automatically.
National averages are useful for understanding the market, but they don't know your budget, your trade, how much you drive or whether your current vehicle needs to be replaced.
If you need a vehicle, I'd rather help you compare real options at real numbers than tell you to wait six months because somebody thinks the market might change.
And if you don't need one yet, there's nothing wrong with watching inventory and waiting for the right combination of vehicle and numbers.
What I'd do if I were shopping in Mid-Michigan right now
Start with the number you're actually comfortable spending—not the $50,089 national average.
Then compare new and used vehicles that fit that number.
If you're shopping a truck, SUV or commuter around Clare, Mount Pleasant, CMU or Midland, SmartCarMatch lets you compare current inventory without starting with a dealership form.
And if payment or trade questions are what's holding up the decision, start there instead. That's exactly why I built the financing-help side of the site separately from the inventory search.
The average new vehicle may be over $50,000 again. Your next vehicle doesn't have to be. — Kahleel Rider, SmartCarMatch
Sources and useful references
Final thoughts
Compare the current used and new inventory on SmartCarMatch, or start with Financing Help if the payment and trade numbers matter more than the badge on the vehicle.
Find My Car