American workers and families across the nation are feeling the pinch at car lots these days. With new vehicle costs climbing to record territory, buying a reliable ride has turned into a major financial hurdle for many households. Data from Edmunds shows the average transaction price for a new car hit $49,105 last month, marking a 3.1% jump from the previous year and inching dangerously close to the $50,000 mark for the first time ever.
This surge stems from a mix of factors, including a bigger slice of the market going to pricier electric vehicles. Ivan Drury, director of insights at Edmunds, explains: “This has been something that we’ve all been waiting for, I don’t think anyone was ever expecting the number to go down. It coincided with a high share of EVs being sold, so naturally, EVs being more expensive it kind of pushed us over the edge.”
For everyday Americans trading in their older models, the reality bites even harder. Those who last bought a car around 2019 or 2020 now face prices nearly $10,000 steeper. Drury notes: “Strip all that away, there’s virtually no vehicle you can buy today that is cheaper than it was from last year, two years ago, five years ago. The average age of trade-in toward a new car is like five and half to six years old right now. People who bought in 2020 and 2019, and especially 2019 for prices, they’re definitely in for sticker shock.”
Bought my last new vehicle in 2006 and won’t buy another one. Can’t afford them.
Let them just sit on all the lots
Let’s see how long that last