Americans Are Dooming and Glooming Again as the Average New Car Price Hits $51,109, but Millennials Don’t Have to Fall Victim

The average price of a new vehicle has gone up again. According to Kelley Blue Book, the new record high is $51,109. That’s $500 more than the previous record, set in December 2025.

It sounds depressing at first. I mean, what’s there to be happy about when you hear that the average price of a new car is even higher? But it’s actually not as bad as you think. Well… It is if you can’t afford a $51,109 vehicle. Don’t worry. It only went up 2.1% this past year.

“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, car prices rose 3.4%.

So… There’s your silver lining. New cars are $51,109. But hey, they may stay at this horrible price for a while instead of increasing even more.

Don’t even think of buying a used car then

The used car market is even worse. The average price of a used car is $27,000, up 6% from last year. That’s according to the same Cox Automotive study.

But hey, there’s more good news. Well, not if you want to buy a used car. If so, things are looking dire. But if you already own a car, you can sell it for more! It’s worth more when you trade it in, so you will pay less up front for a new car.

Unfortunately, the real money is what you pay every month. According to Edmunds, the average amount financed for a new vehicle has hit a new record in Q3 of 2026: $44,664. In 2026, buyers are also signing up for longer loan terms. Like 84 months or longer. This means they’re paying more interest, increasing the price they paid for the already expensive new car. But that’s sadly the choice many Americans have to make.

Not everyone can afford a $51,109 vehicle. But that doesn’t mean they won’t suffer to do it anyway.

“What we’re seeing in the data is a remarkable display of consumer resilience against a very stretched financing landscape,” said Jessica Caldwell, Edmunds’ head of insights. “Even as monthly payments hit record highs, loan terms stretch to historic lengths, and four-figure monthly payments become more common, buyer demand for new vehicles hasn’t dropped off. Instead of sitting on the sidelines, consumers are adapting: They’re allocating more of their household budgets to their vehicles, stretching out their loan terms, and becoming more proactive about shopping around for financing to find ways to make the numbers work.”

And that $51,109 average doesn’t include all the add-ons dealerships will push on you, especially if you’re looking at a pickup truck. The F-150 has like 230498234 trims. Drivers want more and more features, including cooling seats and AI assistants.

“Nobody wants entry-level anymore,” said Ivan Drury, director of industry insights at Edmunds. “Everybody goes mid-to-upper trim levels.”

So… Should I be feeling bad???? I’ve been ranting about how expensive cars have been getting for a while. Tariffs, profit loss, and smaller profit margins have forced automakers’ hands (tires?). And Americans are the ones who suffer those consequences. However, it seems that Americans are just saying, “F*** it, we ball.” They’re not trying to penny-pinch at the dealership. They’re thinking, “Well, I’m already going broke for this car anyway. Might as well give me the WiFi and gesture controls!”

Well, research shows most of these suckers are older, wealthier people. Actual struggling Americans are just holding on to their older vehicles even longer. You don’t see buyers in their 30s as much anymore. And without all us cool millennials buying vehicles, I guess automakers are free to keep making homely, overpriced SUVs.

It’s not all doom and gloom, really

Is there any hope left if you’re 35, hot, broke, and need a new car? I mean… Yes.

While sedans and compact cars have crappier profit margins for automakers, some brands are still trying to bring some of these options back. If you’re willing to buy a Honda Accord or Mazda 3, you won’t be paying $51,109. Just talk to a financial advisor before agreeing to an 84-month loan.

The average price of a new vehicle accounts for all those expensive SUVs and fancy EVs. When you do that, it’s gonna sound bad. I mean, higher truck trims are nearing the six-figure mark. But if you just want a cute commuter, you can pay $35,000 and avoid all the add-ons, long loans, and other bad life choices. And some are actually pretty good on gas, so you can save at the pump, too.

Honestly, don’t be sad. You can always get an unpainted Slate truck.

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Why do F-150 trim packages push buyers toward higher prices so quickly?

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