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

[dalton99a]

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

Sticker shock: Car prices top $50K for first time in US, Kelley Blue Book says
Tariffs and pricier vehicles catering to wealthier buyers are driving the new-vehicle market higher.
Pras Subramanian · Senior Reporter
Tue, October 14, 2025 at 9:20 AM CDT

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 $50,080. 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.

The most recent CPI data from August confirms what KBB observed in September. The Bureau of Labor Statistics reported that new vehicle prices rose 0.3% in August and were up 0.7% year over year. Even the used vehicle market saw prices inflate, up 1% in the month and 6% year over year.

Due to the government shutdown, the September CPI report has been delayed.

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And the tyrant keeps raising his tariffs

[W_HAMILTON]

1. Trump did that.

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/

[dalton99a]

3. +1. Absolutely

[EdmondDantes_]

4. Not really given the cost only jumped about $2,000 this year

Tariffs play a role, but the root cause is more about increased safety features and bigger sized vehicles for the overall price. Domestic car manufacturers don't make sedans, just trucks and SUVs so their prices are higher. And consumers go for the bigger vehicles because they want more space, or safety since everyone has a big vehicle, or other reasons.

But having to put in lane assist, sensors for telling you the tire pressure, adaptive cruise control, back up cameras, etc, which all increase safety, but cost money to put in.

[BannonsLiver]

5. I'm sure Trump appreciates you attempting to clarify all of that.

🙄

[EdmondDantes_]

7. Did you forget to supply an argument, or were you just trying to insult me?

Eye roll emojis aren't actually a persuasive response. If you want to blame everything on Trump that's a choice. But it's a choice that avoids all agency and reality.

Given the second highest car price in record was 2024 when Biden was president, should we blame Biden for that? Or do we only understand nuance when it benefits us?

[W_HAMILTON]

10. Simple question: would car prices be lower today if not for Trump's tariffs?

[EdmondDantes_]

14. Simple is fine if one doesn't want to understand I suppose

So let's take a very simplistic look by comparing the average price last year before the tariffs was 48,700 and now it's 50,080 after the tariffs, that gives us 1,380, giving us 2.7% as the cost difference. But we know inflation exists and so you can't assign all of the additional cost to the tariffs. Inflation in 2025 has been 2.9%. So if we used simple logic, tariffs dropped the car price by .2%. Which is of course a ludicrous claim, but many things go into the price of a car. For example blind spot assistance costs about 1,600 which is above the cost increase.

What's more the cost since we're dealing with average and not median is people buying EVs since the rebates were known to be ending in September and higher end vehicles higher end buyers are less impacted by higher interest rates and economic fears. And those cars are in fact more expensive than the median car. Luxury vehicles costing over 75,000 went from 6% of cars to 7.4% of cars in the last year. EV sales went up 30% in September and are up to 10.5% of sales Those both increased the average regardless of tariffs.

And sorry but the real world is complicated. Many things go into the price of a car. I'm sorry you think everything bad lays at the feet of Trump, but it's faulty reasoning and leads to lack of agency and an increasingly nihilistic view.

[W_HAMILTON]

15. Yeah, I don't know what your agenda is, but that long a response for a simple yes/no question?

I will stick with my previous response in that I will continue to trust Kelley Blue Book, but thank you for sharing your opinion.

Spoiler alert: yes, Trump's tariffs have increased the cost of new cars. This is entirely a MAGA-inflicted additional cost to everyday consumers that would not even exist had Kamala won.

[W_HAMILTON]

9. Thank you for your opinion but I'll trust Kelley Blue Book.

[MineralMan]

2. There are still a number of new cars available

between $20K and $25K. All small SUV-type. These days, they all have pretty advanced features, too. Look at Hyundai, KIA, Nissan, and others.

[BannonsLiver]

6. Two of the three manufacturers you listed are terrible.

[MineralMan]

11. You mean KIA and Hyundai, I assume.

Well, I've owned two KIA Souls, both bought new, and they have been excellent little cars. I drove the 2013 Soul for seven trouble-free years and traded it for a 2020, for which I paid cash. Others might have different experiences with them, I suppose. I still have my 2020 Soul. I also have another South Korean made car, my 2021 Chevy Trax, built in a nearby factory to the Hyundai Kia facilities. It's quite similar in design and is also doing a great job of transporting me around. So, I'll have to take your assessment for what it is...

In any case, the point is that there are vehicles available for half the price discussed in the OP. The $50K number was an average price, so I'm sure there are others that fall well under that price.

[kevinbgoode1]

8. It isn't just the sticker shock, the cost really hits when the loan terms are considered. . .

"Seven-year loans made up 19.8% of all new vehicle financing by dealers in the first quarter of 2025, Edmunds reports, an all-time high.

The average new-car customer borrowed $41,473 in the first three months of 2025, at an annual interest rate of 7.1%, for an average monthly payment of $741. Those financing terms added $9,231 in interest to the cost of the average car."

https://www.usatoday.com/story/money/2025/04/26/car-loans-interest-rates-depreciation/83256984007/


I purchased a new car a few months ago, with the base MSRP at just over 17k. With a couple of added features (armrest, mats) and destination charges, the price went up to over $19k. Being elderly, I added extended warranty and maintenance plans - that took the price up to $22k. They were going to add more to the cost if I paid cash (which I had planned to do) so I let them put me on a loan with a no prepayment penalty. That loan, over the term, would have added another $8500 to the cost. I waited until it was processed/posted online and paid it all off before the first installment payment was due.

Frankly, I don't know how anyone can afford a new vehicle these days. I've always driven economy cars with as few extra features as possible (as well as a manual transmission) and am still shell-shocked at the cost today.

[Johnny2X2X]

12. I will never understand who is buying all these new cars

Never owned a new vehicle and never will. And my income is in the top 10%.

$50K is a $900 a month payment, who the hell can afford that? Yet there are new cars on the road everywhere I look.

[MineralMan]

13. I didn't buy new cars until I was 70 years old.

After I could no longer get under cars to work on them, I switched to buying new for the warranty. when the warranty is over, I replace them now.

But, I buy at the bottom of the new car market. So far, my most expensive new car cost $24K out the door. I pay cash for my cars, so no payments. I sell or trade the old one to keep the purchase cost down. Works pretty well and I never have to pay for repairs. I'm fortunate enough to be able to do that.