U.S. Department of Energy - Energy Efficiency and Renewable Energy
Vehicle Technologies Office
Fact #638: August 30, 2010
Average Expenditure for a New Car Declines in Relation to Family Earnings
Although the average expenditure for a new car has increased from 1967 to 2009, family earnings have also been on the rise. For this period, new car expenditures went from $3,216 to $23,186, while median family earnings went from $7,933 to $77,149. The expenditure for a new car as a percentage of annual median family earnings reached its peak in 1993 at more than 45%; in 2009 it declined to its lowest point at just 30%.
Average Vehicle Expenditure as a Percentage of Annual Median Family Earnings, 1967-2009 
Supporting Information
Average Expenditure for a New Car and Annual Median Family Earnings
| Year |
Average Expenditure for a New Car |
Annual Median Family Earnings |
New Car Expenditure Share of Annual Median Family Earnings |
| 1967 |
$3,216 |
$7,933 |
40.5% |
| 1969 |
$3,557 |
$9,433 |
37.7% |
| 1971 |
$3,742 |
$10,285 |
36.4% |
| 1973 |
$4,052 |
$12,051 |
33.6% |
| 1975 |
$4,950 |
$13,719 |
36.1% |
| 1977 |
$5,814 |
$16,009 |
36.3% |
| 1979 |
$6,847 |
$19,661 |
34.8% |
| 1981 |
$8,910 |
$22,388 |
39.8% |
| 1983 |
$10,606 |
$24,580 |
43.1% |
| 1985 |
$11,838 |
$27,144 |
43.6% |
| 1987 |
$13,386 |
$29,744 |
45.0% |
| 1989 |
$14,371 |
$32,448 |
44.3% |
| 1991 |
$15,475 |
$34,775 |
44.5% |
| 1993 |
$16,871 |
$36,764 |
45.9% |
| 1995 |
$17,959 |
$40,572 |
44.3% |
| 1997 |
$19,236 |
$45,326 |
42.4% |
| 1999 |
$20,710 |
$50,784 |
40.8% |
| 2001 |
$21,474 |
$56,628 |
37.9% |
| 2003 |
$21,646 |
$60,135 |
36.0% |
| 2005 |
$23,017 |
$66,977 |
34.4% |
| 2007 |
$23,892 |
$75,610 |
31.6% |
| 2009 |
$23,186 |
$77,149 |
30.1% |
|
* Even years not included.
Source: Ward's Automotive Group, Average Expenditure per New Car, on the wardsauto.com Web site. |
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