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Average cost of a new car in the US reached $50,080 in September, the first monthly average above $50,000. Record electric vehicle and luxury sales drove a 3.6% year-over-year increase, higher loan terms and rising monthly payments, according to industry data and expert analysis.
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September average new-vehicle price: $50,080 — first time above $50,000
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EVs and luxury models led the increase; battery-electric vehicles reached a record 12% market share.
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Average monthly new-car payment rose to $754; one in five buyers now pays over $1,000 per month.
Average cost of a new car in the US hit $50,080 in September; rising EV and luxury sales pushed prices and monthly payments higher. Read COINOTAG analysis with data and expert insight.
Author: COINOTAG | Published: October 14, 2025 | Updated: October 14, 2025
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What is the average cost of a new car in the US?
Average cost of a new car in the US reached $50,080 in September, the first time the monthly average surpassed $50,000. Industry reporting shows this represents a 3.6% year-over-year increase, driven primarily by higher sales of electric vehicles and luxury models.
How did electric vehicle and luxury sales push prices higher?
Record EV sales, amplified by the expiration-related rush for a $7,500 federal tax credit, increased demand for higher-priced battery-electric models. Kelley Blue Book (Cox Automotive) reported electric models recorded an average selling price of $58,124 in September. Luxury vehicles also expanded their share: more than 60 models averaging over $75,000 accounted for 7.4% of new-car sales, up from 6% a year earlier. S&P Global research and Edmunds.com data corroborate shifts toward used-vehicle uptake among younger buyers and higher average loan durations.
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Frequently Asked Questions
Why did the average new-car price rise by 3.6% year-over-year?
Price growth stems from a combination of stronger sales in the premium segments (EVs and luxury vehicles), extended loan terms, and persistent supply-chain and tariff-related cost pressures. Data from Kelley Blue Book, S&P Global and Edmunds.com show segment mix and financing trends explain most of the increase.
How does this affect affordability for typical buyers?
Higher transaction prices translated to higher monthly payments: the average new-car payment rose to $754 in Q3, and about 20% of new-car buyers now pay over $1,000 monthly. Many cost-sensitive consumers are deferring purchases, choosing used vehicles, or keeping older cars longer.
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Market Context and Expert Commentary
Erin Keating, Executive Analyst and Senior Director of Economic and Industry Insights at Kelley Blue Book’s parent company, Cox Automotive, noted that “the days of the $20,000 car have disappeared from the market.” Keating highlighted the influence of wealthier buyers and the shift in new-vehicle mix toward trucks, SUVs and high-priced models. S&P Global research supports this observation, reporting a rise in used-car demand and an increase in the average age of cars on the road to beyond twelve years.
Automaker financials also reflect these pressures. Ford Motor Co. forecast a significant drop in adjusted earnings before interest and taxes—up to 36%—partly due to net tariff effects estimated at $2 billion. Analysts warn that automakers absorbing tariff-related costs may eventually pass a portion of those costs to consumers, further contributing to price inflation.
What financing trends are emerging?
Buyers are accepting longer loan terms—seven years or more—to keep monthly payments manageable. While extended financing eases monthly burden, it raises total interest paid and can increase default risk over longer horizons. Edmunds.com and industry finance reports show longer average loan durations and higher monthly obligations than pre-pandemic levels.
Key Takeaways
- Record-high average price: September’s $50,080 average marks the first month above $50,000, reflecting market mix changes.
- EVs and luxury drove the rise: Battery-electric models averaged $58,124; luxury models made up a larger share of sales.
- Affordability pressure: Average monthly payments climbed to $754; financing terms are lengthening and more buyers are turning to used vehicles.
Conclusion
The US new-vehicle market crossed a major threshold in September when the average cost of a new car in the US reached $50,080, driven largely by electric-vehicle and luxury demand and compounded by tariff and financing pressures. Industry data from Kelley Blue Book, S&P Global and Edmunds.com and comments from experts such as Erin Keating underscore a structural shift in vehicle mix and buyer behavior. For consumers and policymakers, the coming months will be crucial to monitor affordability, financing practices and automaker responses to cost pressures; COINOTAG will continue to report developments and provide data-driven insight.
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Source: https://en.coinotag.com/average-new-car-price-in-u-s-dollars-may-top-50000-in-september-amid-surge-in-ev-and-luxury-sales/
