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CLEVELAND — The average price of a new car is now at a record high.
Kelly Blue Book shows the average price over $50,000 for the first time as of September. That’s an increase of 3.6% year-over-year; it’s the largest since 2023. Those numbers don’t stop people from shopping for cars.
Marcello Johnson is hunting for a new car, and he already has sticker shock.
“Price is scary. MSRP is up in 35,000, which, you know, I thought 20,000 was good. I might have to get a second job,” said Johnson.
Those in the market for a new vehicle can expect to find higher car prices than before.
Tim Elliott is the Executive VP for the Northeast Ohio Auto Dealers Association. An organization that advocates for new car dealers in Northeast Ohio. He said that since the cost of labor increased for manufacturers; the increase goes to the consumers. Elliott said the cost of materials and the demand for a vehicle can also contribute to the sticker price.
“The average monthly payment, getting financing terms and about 70% of all vehicles are financed is now in excess of $800,” said Elliott.
Elliott has been in the car business for 40 years, and he said he never thought he would see car prices as high as they are now. He said that some of the most sought-after vehicles in Ohio are pickup trucks and large SUVs.
Stevi Austin sells cars at Honda of Cleveland Heights and he confirmed prices have skyrocketed.
“I’ve seen a lot of car payments be anywhere from $800 to $900 easily,” said Austin.
She said people are still buying new cars, and the numbers back her up. According to Autoview, an online site that provides information on new and used vehicle registration data in Ohio, the sale of new cars in Ohio has grown over the last few years.
In 2023, 428,800 were sold; in 2024, there were 449,798 sold; and in 2025, 468,666 were sold.
“A lot of customers come in to buy for commuting back and forth to work, taking their kids to school, soccer practice, football practice,” said Austin.
From what Austin sees, many of her customers are seeking family cars, and she said many of them come to her because they want reliable cars and they will pay the cost.
Austin said that buying a new car is an investment, and it’s best to get what you want and what’s in your budget.
“One of my must-haves was push to start something with good fuel economy and longevity,” said Johnson.
Data from Edmonds said that 19.3% of all car buyers who financed a new vehicle purchased in the fourth quarter of 2025 agreed to pay more than a thousand dollars a month. For Johnson, he said the price is one thing that could stop him from driving away in a brand-new car.
“I haven’t bought a car in over eight years, so my top is maybe $700, $750, but because of how much I love the vehicle,” said Johnson.
If you are in the market for a new car, there is a new temporary tax bill that lets eligible buyers deduct up to $10,000 a year in interest on qualifying loans for personal vehicles. However, the vehicle’s final assembly must have been done in the United States.
It’s advised to check with a tax expert before buying a car intending to use the deduction.

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