Cox Automotive: Average US new-car price tops $51,109, monthly payments set record

Cox Automotive, citing Kelley Blue Book data, said the average price of a new vehicle sold in the United States rose to a record $51,109 in October, up 2.1% from a year earlier. The average manufacturer's suggested retail price rose 2.4% to $52,933. Edmunds separately reported the average new-car monthly payment reached $787 in the third quarter, a record, while used-car payments averaged $582. The two datasets cover different periods, but both point to higher financing costs.

The data shows financing terms are absorbing higher prices. Edmunds said the average amount financed for a new car reached $44,664 at an average 7% annual percentage rate, with new-car loan rates near their highest levels since the mid-2000s. That means buyers are borrowing more over longer periods to lower the monthly bill. The firm said 25.5% of new-car loans lasted 84 months or longer, a record, and 21.2% of financed buyers committed to payments of $1,000 or more each month. The average new-car payment rose from $756 a year earlier and $777 in the second quarter.

Cox said the price increase outpaced overall inflation. Motor1, an automotive news outlet cited in the report, attributed part of the record average to a shift toward larger vehicles, especially mid-size SUVs and full-size pickup trucks. Edmunds head of insights Jessica Caldwell described the pattern as consumer resilience against a stretched financing landscape, with buyers allocating more household budget to vehicles and shopping for financing. The same report noted nearly three in 10 new-car trade-ins are underwater, meaning owners owe more than the vehicle is worth.

The record price and payment data shows ownership costs are rising sharply for many households, before insurance, fuel and maintenance. Higher loan balances and longer terms increase exposure to depreciation, because a vehicle loses value faster than the loan shrinks. For lenders, longer terms and higher loan amounts can raise the risk that borrowers owe more than the car is worth when resale prices decline. The data also shows demand has not collapsed, but the financing burden is shifting into future budgets.