In late 2025, U.S. car prices have reached historic highs, with the average new vehicle costing around $50,000 and many popular models costing thousands more than they did five years ago. While inflation plays a role, pandemic supply disruptions, consumer demand for larger vehicles, and automakers’ focus on high-margin SUVs and EVs have driven prices up faster than ever.

Political efforts to improve affordability, such as eased fuel-efficiency standards or suggestions to import cheap micro-cars, have yielded little relief. Even relatively affordable options are pricier than before, and used cars and repairs have also become costly. For many Americans, cars remain essential for daily life.

As Evelyn Blumenberg, a professor of urban planning at UCLA, put it: “For much of the country, cars are necessary to ‘lead a reasonable quality of life.’ If people can’t afford a decent car … they sacrifice huge amounts of time, job opportunities, and upward mobility.” The article suggests that without structural change, high prices will persist.