Average price of new car tops $50k for first time, report finds

"The average price customers paid for a new vehicle in the US was $50,080 in September, a reflection in part of the steadily rising prices in the wake of automotive tariffs. But while tariffs have certainly impacted prices, Kelley Blue Book - which tracks prices in the auto industry - said the 3.6% year-over-year average transaction price increase was fueled by luxury vehicles and expensive EVs."

""The $20,000-vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market," Erin Keating, executive analyst at Cox Automotive, said in a statement on Monday. "Today's auto market is being driven by wealthier households who have access to capital, good loan rates and are propping up the higher end of the market." Despite 25% tariffs on most imported cars and parts, prices haven't shot up dramatically yet for cars."

Average new-vehicle transaction price in the US reached $50,080 in September, surpassing $50,000 for the first time. Year-over-year average transaction prices rose 3.6%, driven largely by luxury models and high-priced electric vehicles. The $20,000 vehicle is largely gone, and many price-conscious buyers have shifted to the used-vehicle market. Wealthier households with capital and favorable loan rates are supporting demand at the higher end. Twenty-five percent tariffs on most imported cars and parts exist, but overall prices have not surged dramatically yet due to an early March buying rush that lowered later demand. Prices are expected to rise when 2026 models arrive, though increases may not fully cover total tariff costs.

Read at ABC7 New York