Average Cost of a Car in the U.S.: What Consumers Are Spending in 2025

Wondering if the price of your next car is going to give you sticker shock? 

You’re not alone. 

The average cost of a car in the U.S. has soared to an eye-popping $47,542 for new vehicles, a number that feels more like a down payment on a house than a typical car purchase. 

This dramatic jump in price isn’t just a random spike—it’s the result of several economic factors coming together in perfect (or rather imperfect) harmony. Most notably, inflation and supply chain disruptions have caused manufacturers to hike up prices. 

Rising costs of materials, like steel and rubber, and labor shortages in manufacturing plants have all contributed to making your dream car cost a lot more than it did a few years ago.

But that’s not the whole story. The surge in car prices isn’t just about inflation and supply chain delays. There’s a bigger shift happening in consumer behavior, especially toward electric vehicles (EVs) and luxury cars. 

These types of vehicles typically come with a hefty price tag. EVs, for example, rely on high-cost technology like large lithium-ion batteries, which, while reducing fuel costs over time, are far more expensive upfront than their gasoline counterparts. 

The trend toward electric options—driven by environmental concerns, government incentives, and just general interest in cutting-edge tech—has pushed the overall average cost of a car in the U.S. to new heights.

Luxury vehicles are another factor contributing to the rise in prices. With automakers like Mercedes, Tesla, and BMW leading the charge, consumers are increasingly willing to splurge on high-end models with the latest tech, superior comfort, and enhanced performance features. 

These luxury cars pack in more features—advanced safety systems, plush interiors, and powerful engines—and as a result, they come with a much higher sticker price.

Now, if that number for a new car makes you do a double-take, don’t fret too much because there’s a more affordable option: used cars. 

The average price for a used vehicle is $27,177, which is still quite a chunk of change but significantly less than new cars. Even though prices for used cars have been rising too (thanks to the ongoing shortage of new vehicles), they still offer more affordable alternatives for buyers on a budget or those who are just not ready to take the plunge into brand-new prices.

So, while the average cost of a car in the U.S. might be higher than many of us would like, it’s the result of shifting consumer habits, market conditions, and production constraints. Whether you’re considering a new car or opting for a used one, it’s important to be aware of these trends and how they affect what you’ll pay at the dealership. 

It’s a different world out there in car buying, but with the right knowledge, you can navigate it without getting caught off guard by those hefty price tags.

So, what’s going on with all these rising prices, and what does it mean for you? 

Let’s break it down.

Why Is the Average Cost of a Car in the U.S. So High?

If you’ve been shopping for a new car lately, it’s hard to miss that sticker shock when you see the price. But what’s behind the rapid rise in prices? Several factors have contributed to this price hike, making the average cost of a car in the U.S. feel like a blow to the wallet.

The average price of a new car in 2025 is $48,401, although the number various significantly, MoneyGeek said.

On Jan 8, 2025, CNBC said the average listing price of a used vehicle was $25,565 at the beginning of December.

1. Inflation

Inflation has been creeping up, causing costs to rise on everything from food to gas—and yes, cars too. The increase in production costs—thanks to pricier materials and labor—has trickled down to the consumer. Manufacturers, needing to keep up with these increased expenses, have passed the costs along to buyers, making the average cost of a car in the U.S. climb higher.

According to CarEdge, the average transaction price for a new car was $49,740 in February 2025.

2. Supply Chain Disruptions

Remember when cars were hard to find? A global shortage of computer chips caused production delays, making vehicles more scarce. Less supply + high demand = higher prices. This has kept the average cost of a car in the U.S. higher than usual.

3. Electric & Luxury Vehicles

A growing shift towards electric vehicles (EVs) and luxury models has raised the overall average cost of cars. These vehicles typically come with higher manufacturing costs, especially EVs, which use expensive battery technology. 

This preference for higher-end options has been steadily increasing, pushing the average cost of a car in the U.S. upward.

According to Chase Auto, the average price of an electric vehicle in the United States is around $53,438, although, prices range from $30,000 to over $100,000. 

What Does This Mean for You?

With prices at an all-time high, it’s no wonder buyers are rethinking their car budgets. For many, the average cost of a car in the U.S. is making new vehicle purchases seem out of reach. As a result, more buyers are opting for used cars or considering financing to make the upfront cost more manageable.

Here’s the thing—just because prices are higher doesn’t mean you’re stuck. There are still ways to make it work:

• Consider Financing: With prices on the rise, financing can help you manage the higher costs by spreading payments out. It’s essential to shop around for the best rates, though—those can vary widely.
• Used Cars Still Offer Value: If new cars are a little too expensive for your liking, don’t forget that used cars offer a more affordable alternative, though those prices have been creeping up as well.
• Electric Vehicles (EVs): While EVs can have a higher upfront cost, you might save in the long run thanks to lower fuel and maintenance expenses, not to mention potential tax incentives. It’s worth considering if you’re looking to make a future-friendly purchase.

How Can You Stay on Top of the Average Cost of a Car in the U.S.?

Keeping track of car prices these days feels like trying to hit a moving target. With inflation, supply chain issues, and shifts in consumer preferences all affecting the average cost of a car in the U.S., prices are constantly fluctuating. 

If you’re planning to buy a new or used car anytime soon, it can be overwhelming to stay on top of all these changes. Prices might differ from one region to the next, or you might notice sudden spikes due to external factors like global chip shortages or the rise of electric vehicles. 

But don’t worry—there are ways to stay ahead of the game and make sure you’re getting the best deal possible.

One of the best ways to keep track of car prices is by using reliable online tools and resources that are constantly updated with the latest data. Websites like Edmunds, Kelley Blue Book (KBB), and Autotrader are all excellent sources for understanding the current landscape of car prices, whether you’re shopping for a new car or used. 

These tools don’t just list the MSRP (Manufacturer’s Suggested Retail Price) of vehicles; they also take into account market trends, regional differences, and price fluctuations that can help you make a more informed decision.

For example, Edmunds is a particularly valuable resource because it not only provides up-to-date pricing information, but it also offers price alerts, which will notify you if the price of a specific car drops or increases. 

This can be a real game-changer for buyers who want to jump on a deal before it disappears or know when to hold off on a purchase if prices are expected to fall.

Subscribing to Market Updates

It’s not just about relying on tools for pricing, though. Subscribing to industry news and following car pricing trends will also keep you in the loop about shifts in the market. For instance, car prices can fluctuate seasonally—there are times of the year when you’ll likely get a better deal on certain models. 

Late summer and early fall are typically great times to shop for new cars, while used car prices often dip in the winter. Being aware of these trends can help you time your purchase to get the most value.

Using Price Comparison Tools

Another way to stay on top of car prices is by using price comparison tools that let you compare prices from different dealerships. Platforms like TrueCar and Autotrader give you the power to search for specific models and compare prices across multiple sellers, helping you spot the best deal. 

These tools can even break down the average cost of a car in the U.S. by make, model, and year, which gives you a clear picture of what you can expect to pay.

Even better, these platforms often give you insight into how well a specific price is performing in the current market. If a price is considered above market value, you’ll know to negotiate—or look elsewhere. This type of insight can be a huge advantage in a market where prices are constantly shifting.

Great price comparison tools are Edmunds.com and Kelley Blue Book.

Track the Factors That Affect the Average New Car Prices in the US

Being aware of the factors that directly affect car prices is crucial. For example, the average cost of a car in the U.S. has risen because more buyers are opting for electric vehicles (EVs), which tend to come with a higher price tag than their gas-powered counterparts. Similarly, luxury cars have been in higher demand, contributing to the overall price increase. 

By staying informed about the factors pushing these price increases, you can make more educated decisions about what types of cars fit within your budget.

Additionally, pay attention to economic factors like inflation, interest rates, and even gas prices. These factors often ripple through the car market, affecting both new and used vehicles. 

If inflation is high, for example, manufacturers may raise their prices to account for increased production costs, and this will trickle down to the consumer. Understanding these broader economic trends will help you predict when prices might go up or down.

Don’t Forget About Incentives and Rebates

When looking at the average cost of a car in the U.S., it’s easy to get bogged down by the sticker price. But don’t forget that you might be eligible for various incentives, rebates, and discounts that can lower the final price. Electric vehicles, for example, often come with government rebates that can knock thousands off the cost, and many manufacturers offer seasonal discounts or special financing options.

Staying on top of these offers is crucial because, just like car prices, they can change based on the season, the dealership, or even the availability of specific models. Websites like Rebates.com and Plug In America offer up-to-date information on rebates for new vehicles, including electric cars, so you can maximize any savings available to you.

Consult a Professional

If you’re feeling overwhelmed by all the variables involved in car pricing, consider consulting a car-buying service or a professional advisor. There are services that will negotiate on your behalf and help you secure a better price. 

Additionally, many dealers offer price match guarantees or financing consultations, where they’ll help you figure out the best deal based on your needs and budget.

Resources to Help You Buy Smart

If you’re feeling a little overwhelmed by the average cost of a car in the U.S., these resources can help guide you through the process of buying:

• Edmunds – Vehicle Pricing & Trends: Keep up with the latest car price trends and get an accurate picture of what to expect. Check it out here.
• Electric Vehicle Incentives: Take advantage of government rebates for purchasing an electric vehicle. Explore available incentives here.
• Used Car Buying Guide: If you’re leaning toward a used vehicle, this guide will walk you through everything you need to know to make a smart purchase. Read more here.

Ready to buy a vehicle? Stay up-to-date on prices and trends by checking out Edmunds’ latest study on new car prices. Visit Edmunds for more details.

While the average cost of a car in the U.S. might seem high, don’t let that scare you off. 

Whether you’re eyeing a new EV or a gently used ride, there are still plenty of options available—just make sure you’re staying informed and flexible with your budget. 

The car of your dreams might just be a little more attainable than you think.

Stay in the know—subscribe to our newsletter for the latest updates! 

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Wondering if the price of your next car is going to give you sticker shock? 

You’re not alone. 

The average cost of a car in the U.S. has soared to an eye-popping $47,542 for new vehicles, a number that feels more like a down payment on a house than a typical car purchase. 

This dramatic jump in price isn’t just a random spike—it’s the result of several economic factors coming together in perfect (or rather imperfect) harmony. Most notably, inflation and supply chain disruptions have caused manufacturers to hike up prices. 

Rising costs of materials, like steel and rubber, and labor shortages in manufacturing plants have all contributed to making your dream car cost a lot more than it did a few years ago.

But that’s not the whole story. The surge in car prices isn’t just about inflation and supply chain delays. There’s a bigger shift happening in consumer behavior, especially toward electric vehicles (EVs) and luxury cars. 

These types of vehicles typically come with a hefty price tag. EVs, for example, rely on high-cost technology like large lithium-ion batteries, which, while reducing fuel costs over time, are far more expensive upfront than their gasoline counterparts. 

The trend toward electric options—driven by environmental concerns, government incentives, and just general interest in cutting-edge tech—has pushed the overall average cost of a car in the U.S. to new heights.

Luxury vehicles are another factor contributing to the rise in prices. With automakers like Mercedes, Tesla, and BMW leading the charge, consumers are increasingly willing to splurge on high-end models with the latest tech, superior comfort, and enhanced performance features. 

These luxury cars pack in more features—advanced safety systems, plush interiors, and powerful engines—and as a result, they come with a much higher sticker price.

Now, if that number for a new car makes you do a double-take, don’t fret too much because there’s a more affordable option: used cars. 

The average price for a used vehicle is $27,177, which is still quite a chunk of change but significantly less than new cars. Even though prices for used cars have been rising too (thanks to the ongoing shortage of new vehicles), they still offer more affordable alternatives for buyers on a budget or those who are just not ready to take the plunge into brand-new prices.

So, while the average cost of a car in the U.S. might be higher than many of us would like, it’s the result of shifting consumer habits, market conditions, and production constraints. Whether you’re considering a new car or opting for a used one, it’s important to be aware of these trends and how they affect what you’ll pay at the dealership. 

It’s a different world out there in car buying, but with the right knowledge, you can navigate it without getting caught off guard by those hefty price tags.

So, what’s going on with all these rising prices, and what does it mean for you? 

Let’s break it down.

Why Is the Average Cost of a Car in the U.S. So High?

If you’ve been shopping for a new car lately, it’s hard to miss that sticker shock when you see the price. But what’s behind the rapid rise in prices? Several factors have contributed to this price hike, making the average cost of a car in the U.S. feel like a blow to the wallet.

The average price of a new car in 2025 is $48,401, although the number various significantly, MoneyGeek said.

On Jan 8, 2025, CNBC said the average listing price of a used vehicle was $25,565 at the begining of December.

1. Inflation

Inflation has been creeping up, causing costs to rise on everything from food to gas—and yes, cars too. The increase in production costs—thanks to pricier materials and labor—has trickled down to the consumer. Manufacturers, needing to keep up with these increased expenses, have passed the costs along to buyers, making the average cost of a car in the U.S. climb higher.

According to CarEdge, the average transaction price for a new car was $49,740 in February 2025.

2. Supply Chain Disruptions

Remember when cars were hard to find? A global shortage of computer chips caused production delays, making vehicles more scarce. Less supply + high demand = higher prices. This has kept the average cost of a car in the U.S. higher than usual.

3. Electric & Luxury Vehicles

A growing shift towards electric vehicles (EVs) and luxury models has raised the overall average cost of cars. These vehicles typically come with higher manufacturing costs, especially EVs, which use expensive battery technology. 

This preference for higher-end options has been steadily increasing, pushing the average cost of a car in the U.S. upward.

According to Chase Auto, the average price of an electric vehicle in the United States is around $53,438, although, prices range from $30,000 to over $100,000. 

What Does This Mean for You?

With prices at an all-time high, it’s no wonder buyers are rethinking their car budgets. For many, the average cost of a car in the U.S. is making new vehicle purchases seem out of reach. As a result, more buyers are opting for used cars or considering financing to make the upfront cost more manageable.

Here’s the thing—just because prices are higher doesn’t mean you’re stuck. There are still ways to make it work:

• Consider Financing: With prices on the rise, financing can help you manage the higher costs by spreading payments out. It’s essential to shop around for the best rates, though—those can vary widely.
• Used Cars Still Offer Value: If new cars are a little too expensive for your liking, don’t forget that used cars offer a more affordable alternative, though those prices have been creeping up as well.
• Electric Vehicles (EVs): While EVs can have a higher upfront cost, you might save in the long run thanks to lower fuel and maintenance expenses, not to mention potential tax incentives. It’s worth considering if you’re looking to make a future-friendly purchase.

How Can You Stay on Top of the Average Cost of a Car in the U.S.?

Keeping track of car prices these days feels like trying to hit a moving target. With inflation, supply chain issues, and shifts in consumer preferences all affecting the average cost of a car in the U.S., prices are constantly fluctuating. 

If you’re planning to buy a new or used car anytime soon, it can be overwhelming to stay on top of all these changes. Prices might differ from one region to the next, or you might notice sudden spikes due to external factors like global chip shortages or the rise of electric vehicles. 

But don’t worry—there are ways to stay ahead of the game and make sure you’re getting the best deal possible.

One of the best ways to keep track of car prices is by using reliable online tools and resources that are constantly updated with the latest data. Websites like Edmunds, Kelley Blue Book (KBB), and Autotrader are all excellent sources for understanding the current landscape of car prices, whether you’re shopping for a new car or used. 

These tools don’t just list the MSRP (Manufacturer’s Suggested Retail Price) of vehicles; they also take into account market trends, regional differences, and price fluctuations that can help you make a more informed decision.

For example, Edmunds is a particularly valuable resource because it not only provides up-to-date pricing information, but it also offers price alerts, which will notify you if the price of a specific car drops or increases. 

This can be a real game-changer for buyers who want to jump on a deal before it disappears or know when to hold off on a purchase if prices are expected to fall.

Subscribing to Market Updates

It’s not just about relying on tools for pricing, though. Subscribing to industry news and following car pricing trends will also keep you in the loop about shifts in the market. For instance, car prices can fluctuate seasonally—there are times of the year when you’ll likely get a better deal on certain models. 

Late summer and early fall are typically great times to shop for new cars, while used car prices often dip in the winter. Being aware of these trends can help you time your purchase to get the most value.

Using Price Comparison Tools

Another way to stay on top of car prices is by using price comparison tools that let you compare prices from different dealerships. Platforms like TrueCar and Autotrader give you the power to search for specific models and compare prices across multiple sellers, helping you spot the best deal. 

These tools can even break down the average cost of a car in the U.S. by make, model, and year, which gives you a clear picture of what you can expect to pay.

Even better, these platforms often give you insight into how well a specific price is performing in the current market. If a price is considered above market value, you’ll know to negotiate—or look elsewhere. This type of insight can be a huge advantage in a market where prices are constantly shifting.

Track the Factors That Affect the Average New Car Prices in the US

Being aware of the factors that directly affect car prices is crucial. For example, the average cost of a car in the U.S. has risen because more buyers are opting for electric vehicles (EVs), which tend to come with a higher price tag than their gas-powered counterparts. Similarly, luxury cars have been in higher demand, contributing to the overall price increase. 

By staying informed about the factors pushing these price increases, you can make more educated decisions about what types of cars fit within your budget.

Additionally, pay attention to economic factors like inflation, interest rates, and even gas prices. These factors often ripple through the car market, affecting both new and used vehicles. 

If inflation is high, for example, manufacturers may raise their prices to account for increased production costs, and this will trickle down to the consumer. Understanding these broader economic trends will help you predict when prices might go up or down.

Don’t Forget About Incentives and Rebates

When looking at the average cost of a car in the U.S., it’s easy to get bogged down by the sticker price. But don’t forget that you might be eligible for various incentives, rebates, and discounts that can lower the final price. Electric vehicles, for example, often come with government rebates that can knock thousands off the cost, and many manufacturers offer seasonal discounts or special financing options.

Staying on top of these offers is crucial because, just like car prices, they can change based on the season, the dealership, or even the availability of specific models. Websites like Rebates.com and Plug In America offer up-to-date information on rebates for new vehicles, including electric cars, so you can maximize any savings available to you.

Consult a Professional

If you’re feeling overwhelmed by all the variables involved in car pricing, consider consulting a car-buying service or a professional advisor. There are services that will negotiate on your behalf and help you secure a better price. 

Additionally, many dealers offer price match guarantees or financing consultations, where they’ll help you figure out the best deal based on your needs and budget.

Resources to Help You Buy Smart

If you’re feeling a little overwhelmed by the average cost of a car in the U.S., these resources can help guide you through the process of buying:

• Edmunds – Vehicle Pricing & Trends: Keep up with the latest car price trends and get an accurate picture of what to expect. Check it out here.
• Electric Vehicle Incentives: Take advantage of government rebates for purchasing an electric vehicle. Explore available incentives here.
• Used Car Buying Guide: If you’re leaning toward a used vehicle, this guide will walk you through everything you need to know to make a smart purchase. Read more here.

Ready to buy a vehicle? Stay up-to-date on prices and trends by checking out Edmunds’ latest study on new car prices. Visit Edmunds for more details.

While the average cost of a car in the U.S. might seem high, don’t let that scare you off. 

Whether you’re eyeing a new EV or a gently used ride, there are still plenty of options available—just make sure you’re staying informed and flexible with your budget. 

The car of your dreams might just be a little more attainable than you think.