(WXYZ) — If you’ve been shopping for a new car lately, you’ve probably experienced sticker shock. Prices are climbing, and not just by a few hundred dollars. According to Kelley Blue Book, the average price for a new vehicle is just over $49,000. That’s up five percent from July, and industry experts say it’s not just inflation; it’s the perfect storm of problems.
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“The prices are pretty.. they’re a little bit larger than we thought they would be,” said car buyer Kevin Smith.
If you’re in the market for a new vehicle and have been kicking the tires on some models you have your eye on, you’ve probably noticed the higher prices. And automotive analyst John McElroy sees it becoming the norm.
“We’re at a historical inflection point in the industry where, probably in the next month or so, the average price of a new car will be more than $50,000,” McElroy said.
McElroy said there’s a number of factors as to why new vehicles are becoming more expensive.
“There’s so much that is going on that is driving up the prices of cars,” he said. “You’ve got the tariffs that have impacted them you’ve got automakers putting more and more features into cars and they’re probably going to go up even more in the new model year.”
As the 2026 models start hitting dealership showrooms, automakers and dealers are offering fewer discounts.
Steve Glassman of Glassman Automotive Group says more customers are financing longer or leasing because of the higher cost.
“A number of people are choosing to extend the term of their loans, which i don’t necessarily think is a good idea, but it’s helping people keep their payments down, and a number of people are going to leasing, which always has a lower payment,” Glassman said.
Smith said for the last five months, he has been shopping around for a new vehicle, going to different dealerships looking for a new car for his growing family.
“A good size for the price. We’re looking for efficiency, gas prices, since they’re high we want better fuel efficiency and something that will fit our family,” Smith said.
And although the price for a new vehicle may be higher than they expected, they’re not shying away from purchasing.
“The vehicle we’re looking at is worth the money,” Smith said.
And if you’re looking to save some money on your next vehicle lease or purchase, remember to check for manufacturer rebates, seasonal sales and lower interest financing options.
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