The staggering cost of buying a car in 2023 requires new thinking.

The cost of buying a car these days is enough to drive someone crazy.

Average monthly payments on new-car purchases have reached $777, according to Cox Automotive – which publishes the Kelley Blue Book guide to vehicle prices. And used car payments have hit an average of $544 per month.

The average sticker price on a new vehicle in the U.S. is now $50,000, according to data compiled by JPMorgan. To get a sense of how far the limits of affordability have been pushed: The price of a Ford F-150 Raptor R pickup now starts at $100,000. The Dodge muscle car revival is also not for the sticker-price squeamish. The base price of a 2023 Dodge Charger Hellcat is over $90,000. And the Challenger SRT Demon is no less than $85,000 - though tricked-out custom models have been priced at almost $190,000.

Even your modest sedans ans family-oriented SUVs are not modestly priced anymore. The Kia EV6 starts at $49,795. The Mazda CX9 is between $40,000 and $50,000. And the Jeep Compass - not long ago available for under $25,000 - is now pushing $38,000 following a 10 percent increase in MSRP.

“For most American households, a motor vehicle is not a luxury. It’s a necessity for commuting to work, grocery shopping, and managing family travel for everything from vacations and holidays to school sports and other youth activities,” said Allen Amadin, President and CEO of American Consumer Credit Counseling, Inc., in a press release about the agency's recommendations for affordable car ownership. “Automakers and their dealers are keeping inventories low to control operating costs. That means sticker prices will remain high and probably go higher.”

ACCC - a Massachusetts-based non-profit which provides budget counseling and debt management services to consumers nationwide - points out that the growth of the gig economy has also made reliable vehicles a necessity for gig workers. Many people supplement their income - and some generate all of their earnings - by driving for companies such as Uber, Lyft, Door Dash, Instacart, and other app-based services.

According to Fitch Ratings, more Americans are falling behind on car payments than has been the case in years. Subprime auto loan borrowers who are at least two months behind on payments rose to 5.67 percent in December, according to Fitch. That’s the highest rate of such delinquencies since 2009, according to the ACCC news release.

The agency has these suggestions and strategies for sidestepping the skyrocketing cost of car buying:

• Hang on for the long haul – "The most cost-effective strategy around new vehicles is not having to purchase one at all. The longer you can own and operate your existing car, the more value you are getting out of the original purchase you made. Regular maintenance such oil and lube changes, tune-ups, tire rotation, and winterizing are the best steps for extending a car’s life. You can also purchase third-party extended maintenance plans and coverage. But be sure to read the fine print and understand what exactly is covered for the monthly cost of such a plan."
• Perform a household automobile usage audit – "Does your family really need two cars? Or three? Look closely at how each vehicle is used, how often and by whom. Chances are with some mild lifestyle adjustments you can downsize car ownership and even generate some cash by selling off an excess vehicle."
• Look again at the used car market - "The peak pandemic years of 2020 through 2022 saw used car prices skyrocket because of a global shortage of computer chips necessary for the manufacture of new cars. Second-hand auto prices have started to come down and the supply of quality used vehicles is increasing. Cars that are one to five years old offer better value than a new car at sticker prices and monthly payments significantly lower than new vehicles. Much older 'basic transportation' vehicles can be found at independent car lots and through private purchase, but it’s important to make sure such cars get a thorough check for mechanical and safety issues."
• Consider creative alternatives like car sharing apps – "If your driving needs are limited and don’t involve daily commuting, you might best be served by using one or more car-share or other similar app-based services. Examples include Turo, Getaround, Flexcar and Zipcar."