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New car buyers can expect to pay an average of more than $50,000 for the first time, according to a report from Kelley Blue Book.
The average price customers paid for a new vehicle in the United States was $50,080 in September, partly a reflection of continued price increases following auto tariffs.
But while the tariffs certainly had an impact on prices, Kelley Blue Book — which tracks prices in the auto industry — said the average 3.6% year-over-year increase in transaction price was fueled by luxury vehicles and expensive electric vehicles.
“The $20,000 vehicle is now largely gone, and many price-conscious buyers are being priced out or browsing the used vehicle market,” Erin Keating, executive analyst at Cox Automotive, said in a statement Monday. “The current auto market is driven by wealthier households who have access to capital, good borrowing rates and who support the premium end of the market.”
Despite tariffs of 25% on most imported cars and parts, prices have yet to rise dramatically for cars. Americans rushed to buy cars in March before the tariffs were imposed, which then lowered demand and prevented automakers from raising prices. Experts said prices would likely rise when 2026 cars hit dealerships, but not enough to cover billions in tariff costs.
CNN’s Chris Isidore contributed to this report.
