This fall, typical new car broke $50,000 barrier; ‘We don’t have $300 monthly payments any longer’
The price of new cars and trucks in the U.S. has increased 33% since 2020, and consumers are piling on interest as they stretch out loan terms to eight, nine and nearly 10 years.
David Kelleher, who runs a Dodge and Jeep dealership in Glen Mills, Pa., 27 miles west of Philadelphia, said many American families can’t comfortably take on a new-car payment these days.
“We don’t have $300 monthly payments any longer in new vehicles,” he said. “It’s a thing of the past.”
The average price of a new car broke the $50,000 barrier this fall, according to Kelley Blue Book. That is up from less than $38,000 in early 2020 before the pandemic hit. As sticker prices marched higher, so did monthly payments. For a few years, car shoppers were undeterred. Many needed new vehicles after putting off buying during Covid when supply chains were upended and dealer lots were empty. Others, feeling flush, opted for luxury vehicles at much higher price points.