The average price paid for a new car in the U.S. crossed $50,000 for the first time, underscoring how new car prices keep rising and stretching buyers’ budgets. According to Kelley Blue Book (KBB), the average transaction price in September was $50,080—up 2.1% from the prior month and 3.6% year over year—the largest annual jump since spring 2023.
Analysts attribute the record to pricier lineups and stronger sales of luxury models and electric vehicles. Jay Jang, vice president at Eden Motor Group, said many brands, including Toyota, are shifting buyers toward hybrids that cost more than comparable gas models, while added driver-assist and convenience tech is pushing prices higher across the board.
As 2026 model-year vehicles arrived at dealerships in September, the average MSRP climbed to a record $52,183, up 4.2% from a year earlier. EVs accounted for 11.6% of September new-vehicle transactions, the highest monthly share to date. For the third quarter, EV sales totaled 437,487, a 10.5% market share and roughly 30% higher than a year ago—helped by buyers moving to purchase before federal incentives ended at the end of September.
Luxury demand also lifted the average. More than 60 models priced at $75,000-plus sold in September, with 94,000 units delivered—7.4% of all new vehicles, up from 6% a year earlier. “The new-vehicle market is inherently inflationary,” said Erin Keating, senior analyst at Cox Automotive. “$20,000-range cars have largely disappeared, and many shoppers are moving to used vehicles they can afford.”
AutoTrader noted that EVs and hybrids, along with safety-equipment mandates, are showing up in higher sticker prices. If EV adoption continues to expand and lineups remain centered on higher trims, the $50,000 level may become a lasting baseline rather than a blip. Industry executives also point to tariffs as another upward pressure on costs; with trade terms now effectively fixed, manufacturers that had delayed price moves to absorb costs say further holdoffs are unlikely.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
