Just how much is that car on the freeway? Chances are the price range of the four wheels rolling by is approximately 40 percent of the driver's yearly income. The average cost of a new car in 1998 was $23,600 and the mean household income during 1998 is estimated at $52,176, giving a 45 percent ratio. Fortunately, as the average price of vehicles has increased, so has the average household income.

Used cars are fairing well with household income and average price. In 1998, the average cost of a used car was $12,500. With the average household income being $52,176, used cars were 24 percent of the household income total.

Those percentages didn't alter buying last year. In 1998 more than 15 million new vehicles and 19 million used vehicles left lots for new driveways and parking spots.

Time has had little impact on the percentage of yearly income and the average cost of new cars. In 1995, the average cost of a new car was $20,450 and the country's average household income was $44,938, still averaging approximately 46 percent of the total. Household income is defined as the amount of income generated within a household. One or more individuals may produce the household income.

The rate of used car purchases also seems unaffected by household income. In 1995, the average cost of a used car was $11,050, 25 percent of the $44,938 mean household income. Checking numbers 10 years back reveals similar percentages with 1988 new car prices averaging $14,100 (41 percent of income) with an average household income of $34,017 and used cars averaging $7,130 (20 percent of income) in 1988.

Stat Corner is written by Denise Caspersen, ASA's research management specialist. She can be reached at (800) 272-7467, ext. 236.

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