U.S. New-Car Prices Near $50,000 as Affordable Models Vanish
Updated
Updated · Forbes · Jul 28
U.S. New-Car Prices Near $50,000 as Affordable Models Vanish
2 articles · Updated · Forbes · Jul 28
Summary
$50,000 is now the average U.S. new-vehicle price, pushing what was once a routine first-car purchase into luxury territory for many Americans.
Higher production costs, stricter safety and emissions rules, and added technology have lifted prices, while automakers have shifted toward higher-margin SUVs, pickups and premium crossovers.
Record monthly loan payments, rising insurance costs and financing terms stretching six to eight years are compounding the squeeze on younger buyers already facing student debt and high housing costs.
Affordable entry-level cars have largely disappeared—only 0.2% of new vehicles were priced near $20,000 in 2025, and fewer than 5% cost under $25,000.
That retreat from starter cars threatens the industry's long-term customer pipeline, since brand loyalty has traditionally begun with an affordable first new-car purchase.