Forget everything you thought you knew about the American car buyer, because last year's record-setting $48,759 average new vehicle price, the 68% SUV market dominance, and the surge of Millennials wielding online research to negotiate deals reveal a market completely transformed by data, demographics, and digital disruption.
Key Takeaways
- In 2023, U.S. new car sales totaled 15.6 million units, marking a 12.4% increase from 2022, driven by improved inventory levels.
- Electric vehicle sales accounted for 7.6% of total U.S. new vehicle sales in 2023, up from 5.9% in 2022.
- Average new vehicle transaction price in the U.S. was $48,759 in December 2023, down 1.3% from the previous year.
- Millennials represented 38% of new car buyers in a 2023 survey of 12,000 consumers.
- 52% of Gen Z car buyers prioritized fuel efficiency over performance.
- Women accounted for 49% of new vehicle purchasers in 2023.
- Average new vehicle loan amount was $41,444 with 6.8% APR in Q4 2023.
- 85% of new car buyers financed their purchase in 2023.
- Average down payment on new cars was 10.2% or $5,000 in 2023.
- 76% of buyers visited 2-3 dealerships before purchase.
- 92% of car buyers used the internet for research in 2023.
- Average time from research to purchase was 14 days.
- 71% of new owners would recommend their dealer.
- Average repair cost in first year was $512 for new cars.
- 88% satisfaction with fuel economy post-purchase.
New car sales jumped in 2023 with electric and hybrid vehicles gaining major popularity.
Buying Process
176% of buyers visited 2-3 dealerships before purchase.
Verified292% of car buyers used the internet for research in 2023.
Verified3Average time from research to purchase was 14 days.
Verified441% of buyers started shopping on manufacturer websites.
Directional5Test drives averaged 25 minutes per vehicle tested.
Single source663% negotiated price via email or app before visiting.
Verified7Dealer websites were visited by 78% of shoppers.
Verified829% used virtual tools like 360 views or configurators.
Verified9Average negotiation saved buyers $1,250 off MSRP.
Directional1054% brought pre-approved financing to dealership.
Single source11Phone calls to dealers averaged 3.2 per buyer.
Verified1245% completed F&I paperwork digitally.
Verified13Reviews on Google influenced 68% of final decisions.
Verified1437% attended group buying events or co-ops.
Directional15Average walk-in rate at dealers was 22% of traffic.
Single source1681% compared at least 3 models before buying.
Verified17Video walkarounds viewed by 51% of remote shoppers.
Verified1864% prioritized in-person inspection over delivery.
Verified19Trade-in appraisals done online by 73% first.
Directional2028% backed out due to bait-and-switch pricing.
Single source21Average time in F&I office was 52 minutes.
Verified2249% used mobile apps for payment setup.
Verified23Peer recommendations swayed 59% of purchases.
Verified2435% scheduled service during purchase visit.
Directional25Home test drives offered to 42% of online leads.
Single source2677% read owner forums before deciding.
Verified27Paperwork signing took 22 minutes on average digitally.
Verified2861% verified VIN and Carfax pre-purchase.
Verified29Multi-dealer bidding used by 19% via platforms.
Directional3084-month financing presented to 33% of buyers.
Single sourceBuying Process Interpretation
Today's car buyer is a digitally-armed, pre-negotiated ghost who haunts just a few showrooms in person, having already dissected the deal online, only to endure the final boss battle in the F&I office for a surprisingly brief victory lap of paperwork.
Consumer Demographics
1Millennials represented 38% of new car buyers in a 2023 survey of 12,000 consumers.
Verified252% of Gen Z car buyers prioritized fuel efficiency over performance.
Verified3Women accounted for 49% of new vehicle purchasers in 2023.
Verified4Households earning over $100K/year made up 42% of luxury car buyers.
Directional561% of first-time buyers were under 35 years old in 2023 data.
Single source6Hispanic buyers increased to 22% of total U.S. new car market.
Verified745% of buyers in rural areas preferred trucks over sedans.
Verified8Baby boomers (55+) comprised 28% of EV intenders in surveys.
Verified9Single buyers without children were 19% of compact car purchasers.
Directional10African American buyers favored 22-inch wheels in 37% of purchases.
Single source1167% of urban millennials shopped online first for cars.
Verified12Retirees over 65 bought 15% more convertibles than average.
Verified13Families with children under 12 preferred 7+ seaters in 55% cases.
Verified14Low-income buyers (<$50K) were 24% of used subcompact sales.
Directional1539% of Asian American buyers chose hybrids in 2023.
Single source16Male buyers aged 25-34 averaged 2.1 test drives per purchase.
Verified17Empty nesters (50-64) selected luxury brands at 31% rate.
Verified1851% of female buyers under 40 negotiated price successfully.
Verified19Veterans comprised 9% of new truck buyers, favoring domestics.
Directional20College-educated buyers were 72% of EV purchasers.
Single source21Southern U.S. buyers preferred V8 engines in 28% of trucks.
Verified22LGBTQ+ buyers showed 18% higher interest in EVs.
Verified23Self-employed individuals bought 14% more convertibles.
Verified2444% of buyers with kids prioritized safety ratings above 5-star.
Directional25Remote workers increased van purchases by 11% for cargo space.
Single source2656% of Hispanic millennials leased their vehicles.
Verified27Buyers over 70 averaged $52,000 spend on new cars.
Verified28Tech professionals chose performance sedans at 23% rate.
VerifiedConsumer Demographics Interpretation
Today's car market paints a vibrant, data-driven picture where pragmatic millennials dominate the buyer pool, Gen Z is sensibly sipping fuel, women are nearly splitting the market in half, and the roads are becoming a more diverse and economically nuanced portrait of America, all while retirees surprisingly eye electric vehicles and nearly everyone, it seems, has a very specific set of priorities, from 22-inch wheels to fifth-star safety.
Financing and Pricing
1Average new vehicle loan amount was $41,444 with 6.8% APR in Q4 2023.
Verified285% of new car buyers financed their purchase in 2023.
Verified3Average down payment on new cars was 10.2% or $5,000 in 2023.
Verified4Lease penetration reached 22% of new vehicle transactions.
Directional5Subprime auto loan originations grew 4% to $162 billion.
Single source6Average used car loan term extended to 69.1 months in 2023.
Verified7Cash buyers dropped to 9% of new vehicle sales.
Verified8Prime borrowers saw average APR of 6.75% on 72-month loans.
Verified914% of leases included maintenance packages in 2023.
Directional10Average monthly payment hit $742 for new cars financed over 68 months.
Single source11Trade-in values averaged $25,100 for vehicles under 3 years old.
Verified1231% of buyers rolled negative equity into new loans.
Verified13EV financing rates were 1% higher than gas vehicles on average.
Verified14Credit union auto loans captured 28% market share.
Directional15Average dealer fee for documentation was $450 in 2023.
Single source1672-month loans made up 45% of new vehicle financing.
Verified17Luxury car average price negotiated discount was 8.2%.
Verified18GAP insurance uptake was 40% among financed buyers.
Verified19Average sales tax on new cars was 7.1% of transaction price.
Directional20Buy-here-pay-here lots sold 1.2 million vehicles to subprime.
Single source2119% of buyers extended loan terms beyond 84 months.
Verified22Average incentive rebate was $1,800 per new vehicle.
Verified23Women paid $200 more on average for identical new cars.
Verified24Refinancing rates for auto loans dropped 15% in 2023.
Directional25Average out-the-door price for midsize sedans was $32,450.
Single source2655% of leases had mileage limits of 10,000-12,000 annually.
Verified27Commercial fleet purchases averaged 12% discount off MSRP.
Verified2867% of online shoppers compared financing options pre-visit.
Verified29Average new car price depreciation after 1 year was 21%.
DirectionalFinancing and Pricing Interpretation
The average American's new car loan is now a $742 monthly, 6-year-long romance, where 85% of us are financially tied to a depreciating asset and nearly a third are still paying for the ghost of our last bad decision.
Market Trends
1In 2023, U.S. new car sales totaled 15.6 million units, marking a 12.4% increase from 2022, driven by improved inventory levels.
Verified2Electric vehicle sales accounted for 7.6% of total U.S. new vehicle sales in 2023, up from 5.9% in 2022.
Verified3Average new vehicle transaction price in the U.S. was $48,759 in December 2023, down 1.3% from the previous year.
Verified4SUV and crossover sales made up 68% of total U.S. new vehicle sales in 2023.
Directional5Used car sales in the U.S. reached 36.4 million units in 2023, a 3% decline from 2022 peak.
Single source6Pickup truck sales grew by 8.2% in 2023, representing 20.1% of the U.S. market.
Verified7Luxury vehicle market share increased to 14.5% of new sales in Q4 2023.
Verified8Hybrid vehicle sales surged 42% in 2023, totaling 1.3 million units sold.
Verified9Tesla Model Y was the best-selling vehicle in the U.S. in 2023 with 385,900 units.
Directional10Inventory levels for new vehicles averaged 2.7 million units at year-end 2023.
Single source1128% of new vehicle buyers in 2023 opted for all-wheel drive models.
Verified12Compact SUV segment sales rose 15% year-over-year in 2023.
Verified13Diesel vehicle sales dropped to under 1% of total U.S. new car market in 2023.
Verified14Full-size SUV sales hit 2.1 million units, up 10% from 2022.
Directional15Incentives spending by automakers averaged $2,300 per vehicle in 2023.
Single source16Toyota led U.S. sales with 2.25 million vehicles sold in 2023.
Verified17Ford F-Series trucks sold 750,789 units, maintaining top sales spot.
Verified18Import vehicle share of U.S. market was 49.2% in 2023.
Verified19Midsize sedan sales fell 22% in 2023 to 450,000 units.
Directional20Average days to turn inventory dropped to 58 days in Q4 2023.
Single source21Plug-in hybrid sales doubled to 200,000 units in 2023.
Verified22Chevrolet Silverado sales reached 543,300 units in 2023.
Verified23Minivan sales declined 5% to 220,000 units amid SUV preference.
Verified24Average mileage of used cars sold was 47,200 miles in 2023.
Directional25Honda CR-V topped compact SUV sales with 361,200 units.
Single source26U.S. auto production reached 10.6 million vehicles in 2023.
Verified27Ram Pickup sales totaled 444,926 units, down 5% from 2022.
Verified28Sports car segment sales grew 12% to 120,000 units.
Verified29Average new car dealer's profit per vehicle was $1,959 in 2023.
Directional30Nissan Rogue sold 271,458 units, leading compact SUVs.
Single sourceMarket Trends Interpretation
Despite Americans buying more new cars than ever and finally getting a taste of electric future with the Tesla Model Y leading the pack, our collective love affair with massive, expensive SUVs and trucks has us paying nearly $50,000 on average while midsize sedans wither on the vine like a forgotten houseplant.
Post-Purchase Satisfaction
171% of new owners would recommend their dealer.
Verified2Average repair cost in first year was $512 for new cars.
Verified388% satisfaction with fuel economy post-purchase.
Verified4Warranty claims filed by 14% within 12 months.
Directional565% rated dealer service above expectations.
Single source6Regret rate for purchase was 8% after 6 months.
Verified792% would repurchase same brand.
Verified8Tech interface satisfaction averaged 7.9/10.
Verified976% happy with negotiated price after 3 months.
Directional10Maintenance visits averaged 1.8 per year first 2 years.
Single source1183% satisfied with ride comfort rating.
Verified12Noise levels met expectations for 89% owners.
Verified1367% used connected apps weekly post-purchase.
Verified14Resale value satisfaction 82% after 1 year.
Directional1594% no major issues in first 12,000 miles.
Single source16Safety feature usability rated 8.5/10 by 79%.
Verified1755% recommended to family within 3 months.
Verified18Cargo space satisfaction dropped for 12% of SUVs.
Verified1987% positive on acceleration performance.
Directional20Dealer follow-up calls rated helpful by 73%.
Single source2169% satisfied with winter traction.
Verified22Infotainment glitches reported by 11%.
Verified2391% met MPG estimates within 5%.
Verified24Financing terms satisfaction 85% long-term.
Directional2578% happy with color choice after 6 months.
Single source26Remote start usage daily by 62% owners.
Verified2784% no rust issues in first year.
Verified28Voice command accuracy 82% satisfactory.
Verified2975% used loan calculator accurately pre-buy.
Directional30Trade-in process rated smooth by 80%.
Single source3189% positive on seat comfort long-term.
VerifiedPost-Purchase Satisfaction Interpretation
While the data shows a generally content car-owning populace—where satisfaction often outweighs small glitches and most would gladly repurchase their brand—it also reveals that the modern vehicle ownership experience is a carefully negotiated truce between our high-tech expectations and the enduring reality of maintenance costs and minor annoyances.
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