Average new car prices just reached a record high

If you’ve recently gone looking for a new car, you’ve probably been shocked by the sticker prices. The range of affordable models continues to dwindle, while prices for already expensive SUVs and trucks swell, leading people to pay more than ever for a new car.

It has exceeded the average transaction price of a new car $50,000 For the first time.

According to A Cox Automotive According to the report, consumers paid an average of $50,080 for a new car in September. This is up 2.1 percent from August and 3.6 percent year-on-year. This coincides with an increase in the average MSRP, which jumped 2.1 percent during the month and 4.3 percent during the year.

Cars are expensive and increasing in value. Increasing production cuts, regulatory uncertainty, and Definitions These factors drive up costs for automakers, making it difficult to produce cheaper models at a good profit.

Most cars priced under $30,000 on sale in America today are imported and subject to tariffs. It was the automakers Send fewer of those vehicles to dealers earlier this year, though, as they were building more lower-end options than other models.

Cox Automotive He attributed the high deal price to increased demand for electric vehicles before the federal tax credit expires. Ford and General Motors reported strong electric vehicle sales last quarter, which will likely push up the average transaction price.

This doesn’t mean consumers don’t want affordable options. Sales of cheap cars rose last year People also sought value. The Nissan Versa, which the automaker will discontinue after 2025, saw sales jump 71.7 percent in 2024. Centra Sales jumped by 39.8 percent, and Nissan will continue to sell them for another generation.

It doesn’t look like new car prices will drop any time soon. Prices have soared during the COVID-19 pandemic, with the average transaction increasing from just under $39,000 in 2019 to more than $47,000 by the end of 2021, and have remained in the $40,000 range since then.

Now, new car prices have entered a new category that seems too expensive for the average consumer. People want cheap cars, but automakers don’t need to serve this market when many are willing to pay so much.