The average price of a new vehicle in the US has climbed to a record $51,109, according to a new Cox Automotive report citing Kelley Blue Book data. Combined with new-car loan rates near their highest levels since the mid-2000s, record sticker prices are putting vehicle ownership increasingly out of reach for many working-class folks, even before insurance, fuel and maintenance costs are factored in.
Cox said average new-car prices in October rose 2.1% from the same month one year ago to $51,109, outpacing overall inflation. The average manufacturer’s suggested retail price (MSRP) also climbed 2.4% year over year to $52,933.
“A big part of the reason for the record-high average comes down to what Americans are buying. Shoppers continue to gravitate toward larger, more expensive vehicles, particularly mid-size SUVs and full-size pickup trucks,” automotive news outlet Motor1 said.
Automotive research firm Edmunds wrote in its Q3 report last month that the average new-car monthly payment reached $787, a record high, while average used-car monthly payments were around $582.
Highlights from the Edmunds report:
- Average new-car monthly payment: $787, a record, versus $777 in Q2 and $756 a year earlier.
- Average used-car monthly payment: $582, versus $566 a year earlier.
- 21.2% of financed new-car buyers committed to payments of $1,000 or more per month.
- 25.5% took out loans lasting 84 months or longer, another record.
- The average amount financed for a new car reached $44,664, with an average 7% APR.
“What we’re seeing in the data is a remarkable display of consumer resilience against a very stretched financing landscape,” said Jessica Caldwell, Edmunds’ head of insights.