The average transaction price reached an unprecedented $51,109, surpassing the previous record set in December 2025 by roughly $500. Although annual price growth cooled to 2.1%, buyers face additional strain as loan rates exceed 7% for new models and 11% for used inventory. Consequently, more than a quarter of all purchasers are now stretching their financing out to 84 months or longer to keep monthly payments manageable.
Key points
Federal Reserve interest rate policies have significantly compounded the overall expense…: Federal Reserve interest rate policies have significantly compounded the overall expense of vehicle ownership by inflating borrowing costs.
Pandemic-era production shifts toward high-margin inventory continue to deplete affordabl…: Pandemic-era production shifts toward high-margin inventory continue to deplete affordable vehicle options and disproportionately burden first-time buyers.
Consumers are increasingly relying on extended loan lengths of 84 months or more to cope…: Consumers are increasingly relying on extended loan lengths of 84 months or more to cope with escalating monthly payment amounts.
Sources checked by our analysis pipeline: 1
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The average transaction cost for a new vehicle has reached a record high: $51,109. That's according to a report out today from the Kelley Blue Book, which is part of the analytics firm Cox Automotive.
That's about $500 above the last record, set in December 2025.
Car prices have been stubbornly high for years, especially since the pandemic, mainly driven by supply chain issues. And they've gotten higher recently, in part thanks to tariffs and to buyers flocking to, and car companies making, larger, fancier vehicles.
Yet there's a little good news: Cars are getting more expensive … more slowly.
While that $51,109 figure is an all-time high, that's only up 2.1% in the 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, cars got 3.4% more expensive a year on average, she continued.
The Kelley Blue Book's transaction cost is based on what people wound up paying for…
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