In the market for a new car? Prepare for sticker shock
By Ramishah Maruf, CNN
New York (CNN) — New car buyers can expect to shell out an average of more than $50,000 for the first time, according to a report from Kelley Blue Book.
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. Americans rushed to buy cars in March ahead of the tariffs, lowering demand later on and keeping automakers from raising prices. Experts said prices would likely jump when 2026 cars hit dealer lots but not enough to cover billions in tariff costs.
CNN’s Chris Isidore contributed to this report.
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