key takeaways
- New car prices rose above $50,000 for the first time, according to new estimates from Kelley Blue Book.
- Analysts at Cox Automotive say it was “only a matter of time” before the barrier was broken.
- Despite rising prices, retail sales are “healthy”, according to the report.
New car prices have reached a major milestone – but many potential car buyers aren’t celebrating.
The average transaction price (ATP) for a new vehicle exceeded $50,000 for the first time in September, reaching a record high of $50,080, according to estimates released this week. kelly blue book (KBB).
“We are expecting to cross the $50,000 barrier,” Erin Keating, executive analyst at Cox Automotive, said in a statement. “It was only a matter of time. This is today’s market, and it’s ripe for disruption.”
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The average new vehicle manufacturer suggested retail price (MSRP) also hit a record of $52,183 in September, an increase of 4.2% year-over-year. Many of the new 2026 vehicles arrived on dealer lots last month.
According to the report, the ATP of more than 60 models was more than $75,000 in September.
America’s best-selling vehicle, Ford F-150Starts at about $39,330, but Keating wrote in the report that the pickup truck’s “regular price is $65,000.”
Despite prices rising for more than a year, retail sales remain stable and at a “healthy pace” driven by the luxury and EV markets, the report said.
“Today’s auto market is being driven by wealthy families who have access to capital, good loan rates and are moving into the higher end of the market,” Keating said. “The pricing story in September was mostly driven by a healthy mix of EVs and high-end vehicles, pushing new vehicle ATPs into uncharted territory.”
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Why are new car prices so high?
Michael Douglas, head of dealer operations and credit at Chase Auto, told the penny hoarder Various factors, ranging from regulatory changes and increased material costs to the shift to more expensive EVs, have “led to production delays, low inventory and higher manufacturing costs.”
Meanwhile, Keating said that although tariffs have “introduced new cost pressures on business”, the reasons for rising prices include cost of partsSupply chain constraints, and America’s preference for larger vehicles.
“It’s important to remember that the new vehicle market is inflationary,” Keating said. “Prices rise over time, and today’s market is certainly reminding us of that. The $20,000 vehicle is now mostly extinct, and many price-conscious buyers have sidelined or are hovering in the used vehicle market.”
And used car prices aren’t much better. according to NerdWalletIn August, the ATP for a 2022 vehicle was $31,156, an increase of 5.5% compared to the same period in 2024.
Connected: I tried to buy a car on Amazon. Here are the advantages and disadvantages.
key takeaways
- New car prices rose above $50,000 for the first time, according to new estimates from Kelley Blue Book.
- Analysts at Cox Automotive say it was “only a matter of time” before the barrier was broken.
- Despite rising prices, retail sales are “healthy”, according to the report.
New car prices have reached a major milestone – but many potential car buyers aren’t celebrating.
The average transaction price (ATP) for a new vehicle exceeded $50,000 for the first time in September, reaching a record high of $50,080, according to estimates released this week. kelly blue book (KBB).
“We are expecting to cross the $50,000 barrier,” Erin Keating, executive analyst at Cox Automotive, said in a statement. “It was only a matter of time. This is today’s market, and it’s ripe for disruption.”
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