New Car Prices Hit Record High: Average Now Over $50,000
Car prices just hit a new record, and for many buyers, a brand-new ride now feels out of reach.
If you’re thinking about buying a new car, get ready for some sticker shock. The average price of a new vehicle in the U.S. has crossed $50,000 for the first time ever. According to Kelley Blue Book (KBB), the average price in September was $50,080. That’s a 2.1% jump from August and about 3.6% higher than last year.
Cars have been getting more expensive for a while. However, this milestone shows how tough the market has become for regular buyers. A few years ago, you could easily find plenty of options under $25,000. Today, that feels like an impossible thing.
Erin Keating, an analyst at Cox Automotive, said, “The $20,000 car is almost gone. Today’s car market is being driven by people who can afford higher prices and have good loan options.”
More than 60 car models now cost over $75,000, which makes up about 7.4% of all new car sales in September. Luxury and high-end vehicles are clearly leading the market. On the other hand, many price-conscious buyers are switching to used cars instead.
Electric vehicles (EVs) are also a big part of this price surge. Many customers rushed to buy EVs before the $7,500 federal tax credit ended. The average price of an EV in September was $58,124, and EVs made up 11.6% of all new vehicle sales that month.
Experts say new car prices might stay high for a while because of strong demand and rising production costs. For now, it looks like the dream of owning a new car is slipping further away for many Americans.
