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Car Buying Squeeze as New Vehicles Near $50,000 and Loan Rates Hover Around 7%

Consumer Reports details ways to curb costs as tariffs lift sticker prices.

Overview

  • Kelley Blue Book reports the average new-vehicle transaction price at $49,814 as of November 2025, up 1.3% year over year.
  • Average new-car loan rates are about 7% with typical terms near 69 months, straining affordability for many buyers.
  • New 2025 tariffs on imported cars and parts raised manufacturers’ costs, with one analysis estimating roughly a 10% or $5,000 impact on the average new car.
  • Used vehicles remain costly and tight in supply, with an average list price of $25,945 and 1–5-year-old models averaging about $31,770, nearly 4% higher than a year ago.
  • Consumer Reports advises securing preapproved financing, avoiding very long loans, watching for dealer add-ons and fees, and scrutinizing lease mileage limits and end-of-lease charges.