Average New Car Price Hits Record $51,109 As Loan Costs Climb

Kelley Blue Book said Tuesday that the average price paid for a new vehicle in the United States has climbed to a record $51,109, underscoring how buying a car is becoming increasingly out of reach for many households.^[1]

The new-vehicle average is up about 2.1% from a year earlier, a slower rise than overall inflation and below the roughly 3.4% average annual increase seen over the past decade, but still a new high in dollar terms.^[1] At the same time, data from Edmunds show average auto loan rates now top 7% for new cars and roughly 11% for used vehicles, meaning a growing share of buyers' monthly payments is going toward interest rather than principal.

Kelley Blue Book reports that used vehicles, once the go-to option for budget-conscious drivers, now sell for nearly $27,000 on average, about 6% more than a year ago, and relatively low-priced used cars make up only a small slice of the market. Tariffs, a pandemic-era production slowdown that left dealer lots understocked, and a shift by automakers toward larger, more expensive pickups and SUVs have all helped keep both new and used prices elevated even as supply chains have largely healed.

Analysts note that while the pace of price growth has cooled, the combination of record sticker prices and higher borrowing costs is squeezing buyers at every income level, especially those with weaker credit who are pushed into the high-rate used market. With affordable small cars disappearing from lineups and few signs that tariffs or the industry's emphasis on pricey models will reverse soon, households looking to replace an aging vehicle are facing some of the toughest math in years when they sit down to sign a loan.

1. NPR