No, you’re not crazy. It really is more expensive than ever to buy a new car. In fact, for the first time, the average transaction price for purchasing a new vehicle in the United States has surpassed $50,000.
There are several legitimate reasons why buying a new car costs more than ever. However, many questions remain unanswered.
According to a recent report by Kelley Blue Book, the average cost of buying a new vehicle in September was $50,080. On top of that, the average new-vehicle manufacturer’s suggested retail price, AKA “the asking price,” reached a record high of $52,183 in September.
Kelley Blue Book attributes the average cost of buying a new car reaching record levels to several factors. One is that luxury vehicles and electric vehicles are taking up a larger share of the American market.
The average cost of a new EV in the U.S. in September was $58,124. EVs also made up 11.6% of all sales – another new record. The number of electric vehicles sold in the third quarter of 2025 also set a new record.
Meanwhile, there were more than 60 new car models with an average price above $75,000 in September. They accounted for an additional 7.4% of total industry sales.
“It is important to remember that the new-vehicle market is inflationary,” said Erin Keating, Executive Analyst, Cox Automotive. “Prices go up over time, and today’s market is certainly reminding us of that.
“The $20,000-vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market. 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.
“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.”
Keating also pointed out that the best-selling vehicle in America is a pickup truck from Ford, which routinely costs over $65,000.
Of course, inflation has affected the average cost of buying a new car. After all, a brand new Ford sedan cost around $2,200 in 1967, according to a 2024 Yahoo Finance report. That will never happen again.
More recently, however, a new car cost around $21,000 in the year 2000, according to a Department of Energy report. Using the cost of inflation alone, that same car would cost around $39,500 today. So it isn’t just inflation that has driven up new car prices. An additional $11,500 has been added along the way to reach the new record average price of $50,080. Little wonder why sales of used cars have been climbing.

source