LOS ANGELES (KABC) — Buying a new car may remain a costly endeavor in the new year, as industry analysts say consumers shouldn't expect prices to fall anytime soon.
Average new car prices are hovering around $50,000, and Brian Moody of Kelley Blue Book says that trend is likely to continue.
"For 2026, expect prices on new cars to remain slightly elevated, although stable, meaning there's not going to be a lot of wild fluctuations in terms of prices up and prices down," he said.
Experts say part of the sticker shock comes from an increase in safety features, many of which are required under federal law. But financing trends are also raising concerns as some buyers take on loan terms that may be difficult to manage.
"We hear stories of people buying cars for $1,500 a month, or 84-month loans. Listen, we just need to say it like straight out, if you are looking for a car and it's an 84-month loan, that's the wrong car for you. It's too expensive," Moody said.
Industry analysts recommend shoppers prioritize their needs over their wants and consider used vehicles, which currently average around $26,000.
They also caution that advertised loan offers may not apply to every buyer.
"Those advertised low APR, that's not for everybody. That's for people with excellent credit," Moody said.
As 2026 approaches, experts say informed budgeting and realistic expectations will be key for anyone.
