Buying a new car is a major financial decision. But it’s only gotten more expensive, according to a new report by Edmunds.
“New car prices are basically, we're, we're really close to $50,000 for an average new car price here in the United States,” said Joseph Yoon, a consumer insights analyst for Edmunds.
The company recently put out data that shows the average price of a new car was $48,402 in 2025. That’s a more than $11,000 increase from 2019's roughly $37,000 mark.
“During the pandemic when all of the manufacturing supply chains kind of got thrown into disarray, manufacturers started really focusing on higher trim level cars because, you know, they had very limited manufacturing and they really wanted to focus on their margins and they just kind of never went back,” Yoon said.
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The days of going into a dealership with $25,000 looking for a car are slimmer and slimmer.
“It is definitely diminishing. I think even listed in the Edmunds report the Versa still available. And it's the only car out there under $20,000 and Nissan has just announced or announced recently that that's sunsetting,” said Chris George, GM of Hyundai of El Cajon.
George also said another factor he’s seen in rising car prices is people moving away from sedans.
“People have migrated to SUVs, which are a higher price point car. There's also been all the new technology in the cars, which is going to be a higher price point car,” George said. “So there's been this natural evolution up and then the preferences of the community that are choosing more expensive cars.”
Edmunds is reporting that new cars in 2025 that sold for $25,000 or less made up just 4.7% of the market.
That’s down from the nearly 21% market share in 2019. Cars priced at $35,000 or less used to make up more than half the market; now according to Edmunds it’s less than a third of sales.
The Scripps News Group asked Edmunds if there’s a chance we could see things reverse back to the way they used to be. The answer was likely not.
“There's also the issue with the economy being so cyclical,” Yoon said. “So, in essence, for a manufacturer to really kind of invest billions of dollars into developing something cheap, by the time that product comes to market, it might no longer be the right fit for the market.”
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So, if you want to get a new car in this market, George said leasing can be an affordable option.
“Leasing has good things, it has bad things. They've gotten way better through regulation over time, and you know what you're getting into day one, and the factory, the manufacturer guarantees the value of that vehicle in 3 years, say half of what the MSRP is today, you only pay for half. So, you can get more car for less payment,” George said.
Another option is knowing how much your current car is worth when looking to trade it in for a new one.
“So having that number in your back pocket when you go to the dealership, I think is your best bet. And also trying to get pre-approved for a car loan somewhere. APRs are very high right now, even if you have great credit,” Yoon said. “So, it's always nice to at least have an idea of what the alternative looks like before you walk into the dealership.”
This story was originally published by Ryan Hill with the Scripps News Group in San Diego.
