Toll of Commuting: Average new car price hits record high $50,000
The biggest price increases can be found in luxury brands like Cadillac and Audi, but also companies like Volkswagen and Mitsubishi, whose year-over-year average price increased 15% and 34%, respectively.
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Buying a new car has reached a record-high cost.
“$50,000 for a new car is excessive, but unfortunately, that's the climate we're living in,” said AAA Mid-Atlantic spokesperson Tracy Noble.
According to a new report from Kelley Blue Book, the average new vehicle purchase is just over $50,000 - the highest it’s ever been. KBB says tariff costs, a rush to buy EVs before tax credits expired and luxury vehicle prices all contribute to that massive average.
Both international and American makes cost thousands more than a year ago. The biggest price increases can be found in luxury brands like Cadillac and Audi, but also companies like Volkswagen and Mitsubishi, whose year-over-year average price increased 15% and 34%, respectively.
There are still relative bargains to be had. The price of a compact car went down slightly to just under $27,000. Midsize pickups also reduced, but legroom and luxury cost even more than before.
“This $50,000 average is driven a lot by large SUVs,” Noble said. “If you go to buy a brand-new pickup truck or a really large, Suburban-type vehicle, you're going to pay almost close to $100,000.”
AAA found that annual new car ownership costs another $12,000 - that includes insurance, financing, fuel and maintenance. Even used cars are more expensive, according to the Consumer Price Index.
“If you can keep your car, if you can find a good used car, that might be a better option for a lot of people,” Noble said.
