New Car Prices Top $50K, Loans Grow

The average sticker price for a new car or truck now sits above $50,000, about 30 percent more than in 2019. Even with incentives and specials, the out the door price rose above $50,000 for the first time in September and stood at $49,191 in January, a record for the typically sluggish sales month, according to Cox Automotive.

That has helped push the average monthly payment for a new vehicle to a little over $800, according to J.D. Power.

Some buyers are taking on even more. About 1 in 5 new auto loans now carry monthly payments of at least $1,000, S and P Global said, projecting that share could double by year’s end.

“We are approaching a threshold that a lot of people don’t want to go over,” said Patrick Manzi, chief economist at the National Automobile Dealers Association.

The industry is watching closely for signs that consumers are running out of room. Delinquencies are rising, and severely delinquent auto loan rates have climbed to levels last seen around the pandemic shutdown. “Affordability” was everywhere at the 2026 National Automobile Dealers Association conference in Las Vegas earlier this month. Executives and analysts keep circling back to the same reality, relief is hard to find in the used market too, with average prices around $25,000.

“There is no doubt that affordability is front of mind,” said Mike Manley, chief executive of AutoNation, speaking to analysts on an earnings call earlier this month.

Tyson Jominy, senior vice president at J.D. Power for automaker data and insights, summed up the core worry this way: “Is there a breaking point where you just push prices past what the average consumer can afford?”

Sales are still holding up. Automakers sold 16.2 million vehicles in the United States last year, their best total after the pandemic. Forecasts point to a softer 2026, with sales projected at 16 million, according to the National Automobile Dealers Association.

One major shift sits under those numbers. Carmakers have moved away from entry level vehicles over recent years, narrowing the low price on ramp into new car ownership.

The last vehicle with an asking price under $20,000, the subcompact Nissan Versa at $17,390, ended production in December. Other low cost subcompacts have vanished too, including the Mitsubishi Mirage, Kia Rio, Hyundai Accent and Chevrolet Spark.

“Americans just don’t want them,” said Jessica Caldwell, head of insights at Edmunds. Buyers are leaning hard toward SUVs and crossovers.

A decade ago, the United States market split roughly evenly between cars and light trucks. Now the light truck category, which includes SUVs, makes up about 8 in 10 sales. Crossover SUVs like the Honda CR V account for nearly half of vehicles sold.

Under $30,000 “is the new threshold for affordability,” said Manzi.

That can blindside shoppers who replace a vehicle every six to eight years.

“It’s not something you shop for every day and so you come back a few years later and get real sticker shock,” said Erin Keating, executive analyst at Cox Automotive.

Caldwell said that reaction shows up again and again.

“That’s what we hear from so many consumers,” she said. “People don’t like it. They’re not happy with how much cars cost.”

A recent TransUnion survey pointed to affordability as the biggest barrier among people planning a near term purchase.

The high end of the market is still moving, giving automakers room to focus on higher margin vehicles. Analysts also point to a widening split between high earners and everyone else. Vehicles priced above $70,000 are sitting on lots for roughly the same amount of time as vehicles below $70,000, and buyers with household incomes above $150,000 accounted for 29 percent of purchases at the end of last year, up from 18 percent in 2020.

“Wealthier customers are driving this,” Manzi said.

New car buyers are getting older too. Nearly half of new car registrations last year came from people 55 and older, according to S and P Global. J.D. Power put the average buyer at 51, up from 50 before the pandemic. Twenty five years ago, the average buyer was a little over 43.

Loan terms are stretching to keep payments from going even higher. The average auto loan is now 68.8 months. A rising share of loans run 84 months or longer. Those seven year loans made up 11.7 percent of the market last year, nearly double the share in 2019, according to J.D. Power.

“We’ve already pushed things pretty far,” Jominy said. “How much further can they go?”

Delinquencies are rising most sharply among borrowers with lower credit scores, and some analysts tie that to wage growth lagging behind costs.

“That’s that K shaped economy. That’s kind of the reality,” Manzi said. “Wages haven’t kept up.”

Analysts also point to tariffs as another pressure point. Some say automakers have absorbed much of the cost so far, with limited time left for that approach.

“At some point we’ll have to see tariff price increases,” Caldwell said.

Some automakers are trying to show lower priced new vehicles still exist, especially in smaller SUVs. Chevrolet has promoted the Trax crossover, which starts at $21,700, and Car and Driver recently named the 2026 Trax its Best Crossover SUV.

“It shows that it can be done,” Jominy said.

Ford’s Maverick pickup starts at $28,145, and the company said earlier this month it plans to offer several more vehicles under $40,000 by 2030. Honda is reviewing its own mix of models.

“With average new car prices hitting record highs across the industry, cost is a growing concern, and we want the Honda and Acura brands to continue to be recognized for delivering incredible value to our customers,” said Lance Woelfer, sales vice president for American Honda.

Analysts are not expecting the return of the $20,000 new car. For many brands, the next “front door” looks like a small SUV.

“That’s the new front door to the industry,” Jominy said.