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Partly cloudy. Low near 75F. Winds NNE at 10 to 15 mph.
Updated: October 14, 2025 @ 8:27 pm
The average price for a new car in the United States has climbed past $50,000 for the first time. Five years ago, the average hovered around $40,000
The report, using new data from Kelley Blue Book, which links record pricing in part to booming demand for electric and luxury vehicles, found that the average transaction price for a new vehicle in September reached $50,080, up 2.1% from August and 3.6% higher than a year ago.
Despite the record highs, buyers are still snapping up new vehicles, especially electric ones. More than 437,000 electric vehicles (EVs) were sold in the third quarter, a record level representing 11.6% of all U.S. vehicle sales.
This however, appears to be unsustainable as analysts say the surge in EV purchases was tied to expiring federal incentives that prompted consumers to finalize deals before the credits ran out.
Average manufacturer sticker prices also set a new high in September, reaching $52,183, up 4.2% year over year, Kelley Blue Book reported.
Industry experts say the price pressure isn’t easing anytime soon. Tariffs on imported vehicles and components, including the 25% base tariff imposed earlier this year on cars built outside the U.S., have increased production costs and uncertainty.
Those tariffs can add as much as $6,000 to vehicles priced under $40,000, the report noted.
The mix of luxury models and higher-priced electric vehicles continues to push averages upward — a trend expected to continue through the end of the year.
This article includes information originally reported by Forbes and Kelley Blue Book.
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