That’s close to the average new car cost of $43,000. (I picked 4 vehicles that, when new, would cost between $40,000 and $45,000. Depreciation costs are much lower now than they were in 2020.įinally, the cost of an average leased car in 2023 is 68.1 cents per mile. High used car prices necessitate that cars are not depreciating as much as they once were. The explanation, I believe, is that you can’t have high used car prices and high depreciation. That’s surprising to me, considering new car prices are up ~20% and used car prices are up ~35% in that time. Next, these cost-per-mile results are only slightly higher than the 2020 results of 45 cents per mile. That is, much more opportunity for great deals and terrible deals. Granted, the used car market contains much more variance. In other words, used cars are priced efficiently. …and for a used car in 2023, over the remaining life of the car, it’s 47.5 cents per mile.įirst, these results are remarkably similar to one another. The lifetime per-mile cost of an average new car in 2023, over the entire life of the car is 47.4 cents per mile. As such, I’m including a 2023 update below, based on more recent data: This article was originally written in October 2020, before the car market fluctuations caused by COVID-related supply chain issues. Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Reddit
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