U.S. News
Average New Car Price Hits All-Time High Above $50,000
By Jake Beardslee · October 16, 2025
Cars Prices Reach Historic Milestone
The average price of a new car in the U.S. reached a record $50,080 in September, surpassing the $50,000 threshold for the first time, according to Kelley Blue Book data. The surge marks a significant milestone in the auto market as affordability concerns intensify nationwide. Christian Wiediger / Unsplash
Wealthier Buyers Drive the Market
Erin Keating, executive analyst at Cox Automotive, said the trend reflects a market increasingly sustained by affluent buyers. “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,” Keating said.She added that “tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new-vehicle ATP into uncharted territory.” Alexander Grey / Unsplash
Car Debt Reaches Unprecedented Levels
A report from Edmunds shows that more Americans now owe more on their cars than the vehicles are worth. More than one in four new car owners carry over $10,000 in negative equity, underscoring the growing strain of auto debt on consumers.Ivan Drury, Edmunds’ director of insights, said the trend is a lingering effect of pandemic-era loans and premature trade-ins. “Much of this stems from shoppers trading out of vehicles too quickly, or carrying loans taken out during the pandemic car market frenzy, when prices were at record highs. Those choices are now catching up, making it far harder to buy again without piling on even more debt,” Drury said. Jakub Żerdzicki / Unsplash
