The average amount Americans are paying for a new vehicle has reached a record $51,109, NPR reported, citing a Kelley Blue Book report from Cox Automotive.
That figure is about $500 above the previous record, set in December 2025. It is an all-time high, but it is up only 2.1% from a year earlier. "A 2.1% year-over-year increase is actually below inflation," said Erin Keating, an executive analyst at Cox Automotive who co-authored the report. Between 2012 and 2021, she said, cars got 3.4% more expensive a year on average. Kelley Blue Book's number reflects what buyers actually paid: sticker price plus add-ons, minus dealer discounts and other incentives. It does not include interest on auto loans. Those rates are now about 11% for used vehicles and more than 7% for new ones, according to Edmunds, NPR reported.
"We are seeing a true shift in the percentage of your monthly payment that's going towards interest versus towards principal," Keating said.
Used cars, long loans and bigger trucks
Used vehicles, which normally make up about two-thirds of sales, are not a bargain either. The average used car now costs close to $27,000, 6% higher than last year, according to Cox Automotive. Ivan Drury, director of industry insights at Edmunds, said vehicles cheaper than that are a "sliver" of the industry. A semiconductor shortage during the pandemic led automakers to prioritize their most profitable models, which later meant fewer used vehicles reaching lots. That helps owners who can trade in, Drury said, but "the consumer that I sympathize with the absolute most? The first-time car buyer."
Edmunds found that buyers in 2026 have been financing with lower down payments and longer terms. In the past quarter they took out loans worth an average of $44,664, and more than a quarter used terms of 84 months or longer. Down payments can be as little as $500 or $1,000, Drury said, which becomes expensive over a long, high-rate loan.
Prices are also up because tariffs have raised the cost of steel, aluminum and goods imported from Canada, and because computer chips and copper are more expensive as data centers compete for the same materials, NPR reported. Americans have also kept buying larger vehicles. The average sticker price for a full-size pickup is nearly $72,000, Kelley Blue Book said, and automakers have largely moved away from compact sedans, citing demand and thinner margins on smaller cars.