Buying a new car has never been more expensive. A new report from Kelley Blue Book shows that the average price for a new vehicle in the United States has surpassed $50,000 for the first time ever.
“That’s shocking,” said one car buyer. “I think it’s obscene.”
The report notes that the average manufacturer’s suggested retail price (MSRP) for 2026 models is even higher — now exceeding $52,000. Analysts describe it as a clear case of “sticker shock.”
The study points out that it was only a matter of time before prices reached this level, especially considering America’s best-selling vehicle — Ford’s pickup truck — often costs well above $65,000. The report also found that the average new Tesla now sells for $54,138.
Economists say several factors are fueling this surge. Tariffs on cars and key auto parts are one major reason. Another driver is the rush to purchase electric vehicles before federal tax breaks expire in September under President Trump’s new legislation that eliminates them.
Experts add that families who can still afford new cars tend to be those capable of buying higher-end models, pushing the national average even higher. “Sales are shifting toward luxury and premium vehicles,” one analyst said. “It mirrors what we’re seeing across the broader economy.”
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For those hoping to save by buying used, there’s little relief. The price gap between pre-owned and new vehicles has nearly vanished. A 2021 Nissan Sentra, for example, costs only about $1,000 less than a brand-new model.
Adding to the trend, demand for electric vehicles has played a key role in lifting prices. Many consumers rushed to dealerships before their tax credits disappeared.
