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U.S. New-Car Prices Top $50,000 for First Time as Debt Pressures Mount

A luxury‑skewed market is pushing buyers into larger loans that increasingly leave trade‑ins underwater.

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BREMERHAVEN, GERMANY - AUGUST 11: Cars of different brands stand parked at the automotive terminal on August 11, 2025 in Bremerhaven, Germany. Following an agreement between the European Union and the administration of U.S. President Donald Trump, a tariff of 15% on most imports from the EU to the US, including automobiles and parts, went into effect on August 7. Some items face no tariffs, while steel and aluminum are tagged with a 50% tariff. (Photo by Focke Strangmann/Getty Images)
BREMERHAVEN, GERMANY - AUGUST 11: Cars and vans of different brands stand parked in front of the car carrier ship Donington at the automotive terminal on August 11, 2025 in Bremerhaven, Germany. Following an agreement between the European Union and the administration of U.S. President Donald Trump, a tariff of 15% on most imports from the EU to the US, including automobiles and parts, went into effect on August 7. Some items face no tariffs, while steel and aluminum are tagged with a 50% tariff. (Photo by Focke Strangmann/Getty Images)
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Overview

  • Kelley Blue Book reports the average new‑car transaction price hit $50,080 in September, with the average EV at about $58,124.
  • Edmunds says 28% of trade‑ins were underwater last quarter and the average negative equity reached $6,905, with nearly a quarter of those cases exceeding $10,000.
  • Experian puts the average monthly car payment around $749, as buyers finance an average of $42,647 and down payments fall to a near four‑year low of about $6,020.
  • Fitch notes subprime loans 60 or more days past due have climbed above 6%, while Bloomberg tallied 1.73 million vehicle repossessions in 2024 and the CFPB cites more than $1.64 trillion in outstanding auto debt.
  • Kelley Blue Book attributes higher prices to tariffs and a sales mix heavy on luxury and EVs, and a buying expert says select brands are offering 0% APR for up to five years, providing uneven relief.