Sticker shock: Car prices top $50K for first time in US, Kelley Blue Book says

[Zorro]

With car prices chugging higher in the US, it was only a matter of time before window stickers crossed the $50,000 mark.

According to Kelley Blue Book (KBB), the average transaction price of a new vehicle in the US topped $50,000 for the first time, reaching a record high of $50,800. KBB, which is part of Cox Automotive, said prices were up a hefty 2.1% sequentially from August and up 3.6% year over year. The 3.6% jump in September was the largest gain in over two years.

"We've been expecting to break through the $50,000 barrier. It was only a matter of time, especially when you consider the best-selling vehicle in America is a pickup truck from Ford that routinely costs north of $65,000," Cox Automotive executive analyst Erin Keating said in the report.

Keating said wealthier households drive the current auto market for new cars because those buyers have access to capital, along with attractive loan rates that prop up the higher end of the market.

Meanwhile, the $20,000 market for cars is "extinct," Keating said, with lower-income and price-conscious buyers perusing the used market.

https://finance.yahoo.com/news/sticker-shock-car-prices-top-50k-for-first-time-in-us-kelley-blue-book-says-142036091.html

[dalton99a]

1. Kick

[uponit7771]

2. PedoCon said he would lower inflation on day one

[Zorro]

3. Up is down in Trump World

[BattleRow]

14. "Stick it to me "shock.

[Bernardo de La Paz]

16. More than that, he said he would bring PRICES down. . . . nt

[Wounded Bear]

20. Interest probably is down for high end financials...nt

[sinkingfeeling]

4. I've been looking at new cars here in Costa Rica. I can buy one for under $18,000 with a manual transmission. And a new

EV starting at $23,500.

[Greg_In_SF]

32. What kind

of cars are these?

[sinkingfeeling]

33. One's a Toyota ( gasoline) Raize, not available in the USA. The EV is a Greeley made in China. A super deluxe

BYD (Chinese, no. 1 selling EV in the world) is $27,500.

[SWBTATTReg]

5. And what's the average length of a car loan now? What's the average cost of insurance?

I think a lot of people avoid these expensive cars if anything, to avoid the hassle, insurance (higher), in short, higher prices on everything associated w/ these vehicles. We don't drive that much, nor have I ever really had a car fixation, that we had to have the latest and greatest in a vehicle.

[spooky3]

27. Virginia imposes a huge annual property tax on cars. I think

It’s a major reason why you see lots of modest, older cars on the road, despite relatively high incomes at least in the cities.

[SWBTATTReg]

37. Absolutely! And in the cities, if you're an urban rat that lives there like other half and me, we don't drive many

miles to / from work, errands, etc., which is very nice. Used to live out in the county, which could take up to 1.5 hours commute by bus from home to work, and then another 1.5 hours the reverse. Ended up buying a place within 8 months of moving there, and LOVE it. I figure that we save at least a couple of hours a day commute time. That adds up!

[The Madcap]

6. This is making expensive repairs

Like new transmissions and new engines a much more attractive option.

[Coldwater]

7. Average Monthly Cost for Financing a New Car

has topped $700 dollars per month.

[ananda]

8. Am I right to suspect tariffs behind this?

???

[EdmondDantes_]

12. Some, but it's been happening longer than the tariffs.

Car prices went up during covid, people buy bigger vehicles and US manufacturers have almost completely abandoned making sedans, and all the various safety features cost money. Those sensors that detect cars next to you, that allow smart cruise control much less autonomous driving cost money.

At the end of 2024 the average price was over $48,700, so even if you want to assign the new price to tariffs, that's a small percentage.

https://www.thepennyhoarder.com/save-money/car-prices-are-increasing/

[ananda]

13. That's what I thought it might be.

Tariffs probably affect parts and repair more.

[Bristlecone]

9. I think that the averages are very skewed by the exorbitant costs

Last edited Tue Oct 14, 2025, 04:59 PM - Edit history (1)

Of high end vehicles. There are plenty of options for far less than 50k.

[erronis]

21. Yes. The median would be a better number. Consumers are pushed to spend for the higher cost ones.

And so many fees are added by the dealership after the poor mark has started feasting his/her eyes on their prize.

[Warpy]

10. Looks like most of us will be driving tuna wagons until the King is ousted.

It's not the worst thing in the world, it's generally a lot cheaper to repair a no frills old car than it is to try to keep up a newer car with automatic everything, especially when the old car was once a popular model and junkyards are full of them.

Blessed be the junkyards, for they shall keep jalopies on the road far beyond Detroit's intentions.

[Ars Longa]

11. I thought the Tarriffs were supposed to bring the prices of cars, and all things

DOWN???
I guess we have to wait 6-12 months for them to kick in?
Right?...

[griloco]

15. A thouuuusand years ago (2nd millennium)

working in the finance biz, auto loans lasted the length of Congressperson's term.
Now they've evolved to Senator's term.

How long before they match Queen Elizabeth's reign?

[Disaffected]

17. $20,000 cars extinct?

https://www.hyundaiusa.com/us/en/vehicles/venue

MSRP $20,550.

Tried one out the other day - not a bad (small) car at all.

[Quanto Magnus]

18. Well greedy executives...

gonna be greedy.....

[popsdenver]

19. It's not just the vehicle's price

It is the incredible State registration/ownership fees that are sky high.

AND if that isn't enough, the costs to decently insure a vehicle are beyond outrageous..........

Note of interest: We have to be really really really careful in Colorado of buying a used car. In Florida and other Atlantic Coast States, if a car is "totaled" due to flood damage, the States make the title display a SALVAGED VEHICLE in bold print on the title so the buyer knows not to buy it, due to overall damage, but especially to the cars ENTIRE electrical system on non electrical cars.

So people transport the TON of flood vehicles to states like Colorado that have no such law to put SALVAGE VEHICLE on the title...so the consumer will know they are in for massive expensively outrageous repairs, more than the price of the vehicle....

[MichMan]

29. Why does Colorado permit this ?

Their politicians getting $$$?

[popsdenver]

36. Please

It is not possible to explain, without getting tagged by DU for DARING to offer constructive criticism of a Dem, or in this case Dem(s).......

(It isn't them being corrupt and on someone's payroll........)

Colorado is really really strange right now....I am very old, and have been watching it develop for over seven decades.......
and I am deeply saddened....................

[ancianita]

22. It's skewed market numbers -- the wealthy population's high end purchases drive up the average purchase price numbers.

It's also inflated production costs due to trump's stupid trade war tariffs on Americans.
https://www.democraticunderground.com/100220718439

Any seller's profit margin motive is to pass on their increased costs to consumers. So they are.

[MineralMan]

23. There are several small SUV-style cars for Less than $24K

While they're all base-trim cars, that comes with a lot of features, good mileage, and good warranties. So, the bottom of the price range hasn't changed much in the past few years. Not much at the actual $20K mark, but under $25K will find several options.

Do you want one of those little cars? Maybe not. But maybe you should test drive some of them. They'll surprise you.

[Champp]

24. Thanks a pantload, Republicans

[Aristus]

25. I've been buying new cars exclusively for the last thirty years.

Kind of an acknowledgment of finally being able to afford something other than a junker.

I think I'm going to swing back to used cars. Late model pre-owned cars can be pretty high quality.

[W_HAMILTON]

26. Trump did that.

[MichMan]

30. Yep, if Harris was president, I bet cars would be at least $10,000 cheaper

[W_HAMILTON]

35. And if they weren't, you can be damn sure MAGA would be criticizing her for it.

If only there were as many MAGA so quick to jump to the defense of Democrats as there are of our fellow Democrats quick to jump to the defense of Trump...

Oh, and then there's this:

No vehicle made at an assembly plant in the United States is 100% made here. Even Tesla sources its parts from other countries. This means that with tariffs, car prices will increase for American car buyers...

...


New cars: Shoppers can expect the tariffs to increase car prices by as much as $6,000 on vehicles priced under $40,000. Higher car prices mean higher car taxes, financing, car insurance, and other ownership costs. This price pressure will make cars less affordable for consumers.

Taken from: https://www.kbb.com/tariffs/

So, yes, I'll say it again, despite the protests of some: TRUMP DID THAT.

[MichMan]

38. "New cars: Shoppers can expect the tariffs to increase car prices by as much as $6,000 on vehicles priced under $40,000"

According to KBB in January (same source as the OP), the average price for a new vehicle last December was $49, 740. That compares with $50,800 now, which is an increase of $1060.

Yet, while they predicted prices would go up as much as $6000 due to tariffs, they only went up $1000. Was some of that due to tariffs? Perhaps, but not sure anyone really knows, given that the KBB prediction was so wrong. It may also be caused by the type of product being purchased, which was their conclusion based on last year's data.

KBB 1/15/25 The average new car buyer in America paid $49,740 last month, close to an all-time high. But high prices aren’t to blame. The increase came thanks to Americans choosing to buy more expensive models.

December’s figure is just $218 under the all-time record set in December of 2022. But that month’s average came thanks to a shortage of new cars, forcing many Americans to pay more than sticker price for a new vehicle and settle for the feature and color combination dealers could get.

Two years later, that picture is radically different. Last month, the average buyer qualified for $3,958 worth of incentives — an 8% discount off MSRP. Incentives grew by 44% in 2024 alone as some automakers found themselves overstocked and used discounts to compete.

So why the high average transaction price? Because Americans went luxurious with their holiday car shopping. Sales of vehicles priced above $80,000 boomed in December, up 37% over a year ago.

https://www.kbb.com/car-news/average-new-car-price-flirting-with-record/?msockid=19f2c8ad273a64ac270aded226bc65e8

[hunter]

28. We really ought to be rebuilding our cities...

... turning them into attractive affordable places where car ownership is unnecessary.

With a human population of over 8 billion this planet cannot support a car for every adult. It's not just the cars themselves but the infrastructure required to support them.

It's unfortunate that in most of the U.S.A. you are literally forced to own a car. If you don't own a car you are not considered a fully functional adult.

I bought a new car once, about forty years ago, because I'd been taught since birth that's what successful people did. I've never bought a new car since and I never will. I'm a pretty good mechanic, I've got my own tools, and I don't buy cars as any kind of status symbol.

I think my favorite car was a Toyota Corolla I bought for $900 and put a few hundred dollars more into for repair parts. Sadly it was totaled while parked in my driveway by a distracted driver.

I'm still sad...

[Bluestocking]

31. You can buy a new Toyota Corolla for $23K

and it will last 20 years with minimal maintenance

[flvegan]

34. 4 of the top 6 vehicles sold is a full size truck

Average price for the #1 spot, the F150, is like $58k. The Ram, Sierra and Silverado aren't far off from that. That's going to skew the average a bit. That's not to say that new car prices aren't ridiculous. IMO, unless you're buying super high end and have more money than sense, more often than not, buying new is for suckers.

Sadly, the used car market sucks right now too.