The average price of a new car in the U.S. has been increasing consistently for many years. Like the humble bicycle cars used to be a form of transportation to travel from point A to point B. That is no longer the case. Today’s automobiles have some of the top high-tech features possible like an internet connection, infotainment system, side-view cameras, rear cameras, air-bags, multiple sensors, a computer, etc. As demand for these gadgets increased automakers have been more than willing to include them or even make them standard in most cars and accordingly raise the price of the vehicles.

According to J.D. Power the average price of a new car reached as astonishing $41,044 in July this year, an all-time high. New car prices soared last year and this year due to unique circumstances like high demand and a limited supply. Chip shortage and supply chain issues led to a huge shortage of new autos.

But even in December 2019, the average price of a new car was $38,948 per Kelly Blue Book.

Compared to the prices in the U.S., 95% of the cars sold in India are priced below $20,000 according to an article at Reuters. Sure India is a poor country while the US is a rich country. But still that does not mean an average car need to cost Americans over $41K.

Source: Ford wakes up badly burnt from its India dream, Reuters