U.S. New-Car Prices Hit Record $51,109

The average transaction price for a new vehicle in the United States reached a record $51,109, about 2.1% higher than a year earlier—slower growth than inflation and the average annual increase from 2012 to 2021. Tariffs and consumer demand for larger, better-equipped vehicles are contributing to the high prices, while sales of lower-cost compact cars and SUVs have also grown. The average excludes loan interest, which adds substantially to ownership costs: rates exceed 7% for new cars and are around 11% for used cars. With purchase prices and borrowing costs squeezing budgets, some buyers are taking on longer loans and higher monthly payments.