Young Americans opt for older cars as new vehicle costs rise
Young Americans are increasingly choosing dependable cars from the late 1990s and early 2000s over expensive new vehicles, often paying cash and doing repairs themselves. The shift reflects the difficulty of taking on large car loans amid high living and insurance costs, and has made these older cars an understated status symbol among some younger drivers.
Jack Price, 30, bought a 2010 Volkswagen Jetta for $6,000 and still drives it five years later, despite taking teasing from some people. New vehicles average more than $50,000, while drivers under 35 made up less than 10% of new registrations in 2024; average monthly payments are $765 for new cars and $542 for used ones. Cars under $15,000 have fallen from 21% to 15% of used vehicle listings in a year, as demand grows for affordable, reliable transport.
In short
- Young Americans are turning to reliable older cars.
- New vehicles average more than $50,000.
- Affordable used cars are becoming harder to find.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Choosing an older car can be a sensible way for younger drivers to avoid large loans and keep more of their income for other costs. A dependable vehicle bought outright, with repairs handled personally where possible, may offer practical transport without the steep payments and insurance costs associated with newer cars.
The case against
Older cars can bring higher repair bills, less predictable reliability and fewer modern safety features, so a low purchase price may not mean lower costs over time. Newer vehicles can offer warranties and improved technology, and financing one may be worthwhile for drivers who need dependable transport and can manage the payments.
Explained simply
Cars made in the late 1990s and early 2000s are now old enough to be much cheaper than new vehicles, though their condition and repair needs can vary. Some younger drivers are choosing them as a way to get around without taking on a large loan, and may pay cash or carry out repairs themselves.
New cars in the US typically cost more than $50,000, while loans, insurance and other living costs add to the expense of owning a vehicle. Young drivers are a small share of new-car registrations, and the supply of used cars priced below $15,000 has also shrunk, making affordable transport harder to find.
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Originally published by The Guardian as “The young Americans choosing Y2K cars over shiny new SUVs: ‘I get so much crap from people’”.