Americans have actually run into problems buying cars. Shortages have been triggered by an extremely low supply of the chips used in electronic and navigation systems. Additionally, supply chain issues have cut the availability of other parts. The chip shortage could last well beyond the end of this year.
The problem has damaged both dealers and manufacturers. Dealers often have few vehicles, and the small number they get may go to customers within days. Manufacturers have shutters assembly lines, and their bottom lines have been affected.
The low supply has pushed up prices. Not only have they hit all-time highs for new cars. Disappointed new car buyers have turned to the used car market, which has pressured their prices up as well.
Another new wrinkle for buyers has been created by high gasoline prices. These recently surged above $4 for the average gallon of regular nationwide. In some areas of the United States, the figure has passed $5. Cars that get high gas mileage have become extremely attractive.
The average price of a new car sold in 2021 was a staggering $43,072. That is equivalent to the entire annual household income of about a third of Americans.
Car and Driver recently analyzed new car prices to find the lowest ones available. Notably, its editors reported, “The cheapest new car sold in the U.S. is nearly $13,000 cheaper than the average price of a used car.”
The least expensive new car available in America is the Chevrolet Spark with a base price of $14,595. The Spark will be discontinued next year. Chevy puts the price of the Spark slightly lower than the Car and Driver analysis. Chevy’s number is $13,600.
The Spark gets very good gas mileage at 30 MPG in the city and 38 MPG on the highway according to the EPA estimate. That is mostly because the Spark has a tiny 1.4-liter four-cylinder engine, which puts out only 98 HP.
The Spark gets relatively good reviews. Car and Driver rates it 7 out of 10. Kelley Blue Book rates it 4.5 out of 5, and Motor Trend rates it 7.1 out of 10.
Click here to read about the most expensive cars in America.
Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
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