This is the US average transaction price. So someone who buys a new $150,000 car will get averaged in, same as someone who buys a new $30,000 car. The weighted average shows what people are actually buying but doesn’t say much about what is available. Most new car buyers are less price sensitive (if they were looking to save money, they’d be buying used), and the richest people are overrepresented because they buy new cars more frequently. Someone who buys a new car once every two years will have 5 transactions counted into this metric for every 1 transaction by someone who buys once every ten years.
Well that depends on if they’re using mean or median. Both are types of “averages,” but a quick skim of the original article doesn’t seem to indicate which they’re using.
This is the US average transaction price. So someone who buys a new $150,000 car will get averaged in, same as someone who buys a new $30,000 car. The weighted average shows what people are actually buying but doesn’t say much about what is available. Most new car buyers are less price sensitive (if they were looking to save money, they’d be buying used), and the richest people are overrepresented because they buy new cars more frequently. Someone who buys a new car once every two years will have 5 transactions counted into this metric for every 1 transaction by someone who buys once every ten years.
Well that depends on if they’re using mean or median. Both are types of “averages,” but a quick skim of the original article doesn’t seem to indicate which they’re using.