A new car sold in the U.S. now costs an average of $50,000, the highest level ever recorded.
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The average sale price of a new car sold in America during September of this year was a record $50,080, marking the first time the average price has topped $50,000, according to Kelley Blue Book. Prices in September were pushed higher as consumers rushed to buy electric vehicles before a $7,500 federal tax credit expired at the end of the month.
The average price of an electric vehicle sold in the U.S. last month was $58,124, which helped push overall prices higher, said Kelley Blue Book. Prices for new cars continue to rise in the U.S. despite claims by automakers such as Ford (F), General Motors (GM), and Tesla (TSLA) that they’re taking steps to lower them.
Tariff Impacts?
The higher prices also come as U.S. automakers downplay the impacts of tariffs on their businesses and prices. In its just-released third-quarter financial results, Ford lowered its expected tariff costs by $1 billion to roughly $2 billion for all of this year.
Kelley Blue Book said that September’s year-over-year price increase was the largest since the spring of 2023, driven by electric vehicle purchases, higher luxury sales, and, to a lesser extent, tariffs. The agency says that U.S. car prices have risen steadily since February of this year. Once expenses such as insurance and fuel are factored in, the average monthly cost to operate a car in America now exceeds $1,000.
Is GM Stock a Buy?
The stock of General Motors has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 14 Buy, two Hold, and two Sell recommendations issued in the last three months. The average GM price target of $73.28 implies 6.87% upside from current levels.
