Vehicles at Ford, Nissan, and GMC dealerships in Richmond, California, on March 3, 2025. Photo by David Paul Morris for Bloomberg/Getty Images
As noted by CNN
If you are planning to buy a new car, you should be prepared for a significant rise in prices. According to Kelley Blue Book, the average price of a new car in the United States has already surpassed the $50,000 mark.
In September, the average amount buyers paid for a new car was about $50,080, which partly explains the gradual rise in cost due to import tariffs.
In addition to tariffs, price increases are driven by other factors: a 3.6% annual rise in the average deal price is largely linked to demand for luxury models and expensive electric vehicles.
“A $20,000 car is now nearly extinct from the lineup, and many budget-conscious buyers are staying away or turning to the used-car market.”
Although import duties at 25% for most cars and parts have not yet triggered a sharp price spike, buyers used to purchase cars more actively in March before tariffs were implemented, which reduced demand later and somewhat restrained manufacturers’ price growth. Experts believe prices are likely to jump again with the 2026 models, but this may not be enough to cover costs due to tariffs.
“Today’s auto market is driven by more affluent households with access to capital, favorable financing terms, and a preference for the top end of the market.”
If you still plan to buy a new car, consider ways to lessen the financial hit from rising prices: a long-term lease or favorable loans with lower rates, comparing offers between dealers, looking at previous-year models, and options with used cars. It is also useful to pay attention to seasonal promotions and manufacturer incentive programs.
Considering all factors, you can find the most cost-effective option that fits your needs and means without compromising the safety and comfort of your vehicle.
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