New car buyers can expect to shell out an average of more than $50,000 for the first time, according to a report from Kelley Blue Book.
The average price customers paid for a new vehicle in the US was $50,080 in September, a reflection in part of the steadily rising prices in the wake of automotive tariffs.
But while tariffs have certainly impacted prices, Kelley Blue Book - which tracks prices in the auto industry - said the 3.6% year-over-year average transaction price increase was fueled by luxury vehicles and expensive EVs.
"The $20,000-vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market," Erin Keating, executive analyst at Cox Automotive, said in a statement on Monday. "Today's auto market is being driven by wealthier households who have access to capital, good loan rates and are propping up the higher end of the market."
