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Here's what else you could buy for the average new-car price of $40,573

Autoblog may receive a share from purchases made via links on this page. Pricing and availability are subject to change. The average price of a new car in America hit a new record in December 2020: $40,573. Not that we're surprised — the average has been over $35,000 for the past few years — but seeing that baseline figure crest 40 large is still a sticker-shock to the system. So, as we do every once in a while, we put our collective heads together and came up with a list of alternatives that you could choose to buy for that sum, new or old, classic or practical. Now, let's be crystal clear about one thing here. We're not actually recommending you make this type of decision. That said, we wouldn't blame you if you did. Managing Editor Greg Rasa: $40,000 will buy a fully loaded Camry or moderately equipped crossover. Or, for $39,997, to be exact, one could go motoring in a fine British automobile. This 2006 Aston Martin DB9 Volante in Alabama has 21,452 miles on it, and depreciation has worked its cruel magic: It is listed for less than one-quarter of its $168,000 starting MSRP when it was new. A check of other used DB9s nationwide indicates this is a fair price. This Aston's CarFax reveals two owners. (One, really, as the second was a dealership. Looks like it got traded in for a Porsche.) If you're understandably concerned about reliability, its service history indicates no surprises to date. Remember, it has a 450-horsepower 5.9-liter V12. And spring is coming. Of course a used Aston Martin is riskier than a new Camry. But as Louis Prima sang, "Enjoy yourself, it's later than you think." What price beauty? Less than $40 grand. Associate Editor Byron Hurd: This price point opens up a ton of options in the "nearly new" luxury space, including a few good enthusiast picks, but my nod here goes to the Cadillac ATS-V. The discontinued, M3/M4-rivaling, 465-horsepower sport sedan and coupe can be had all day long in this price range with low miles. In fact, the real challenge is finding one in the spec you want, since it's one of those old-fashioned cars that actually presented the buyer with choices. Here's a clean, six-speed sedan in an actual color for less than our target price, for example. Coupes are more plentiful than sedans, especially in interesting colors, but there are plenty of them out there.

Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance

Cadillac dealers get $5,000 incentive for ELR test drives

The 530 Cadillac dealers - out of 940 total dealers - that signed on to sell the brand's ELR for $75,000 or lease it for $699 per month have managed to move 247 of them in the last five months. That's a little less than two cars for each dealer more than two dealers for each car if you need help with the math. With inventories of the luxury plug-in hybrid building up - Automotive News reports a 725-day supply - General Motors has created the Demonstrator Allowance Program to billow the sails on that slow moving ship, giving dealers $5,000 to promote ELR test drives.
A dealer with one ELR in its test fleet that racks up 750 test driven miles between May 1 and June 2 earns the fifty Benjamins, a dealer with two ELRs in the test fleet will get one hundred Benjamins. That will be added to summer incentives for dealers that pay $2,000 for units sold in July and $1,000 for units sold in August, while on the customer side, Cadillac has put "customer discount certificates" worth $3,000 on the hood for buyers and lessees.
Cadillac suggests this is about raising awareness of the ELR, but the question is how much dealers will be able to do for a car that observers - and buyers, apparently - still consider highly overpriced.