Will you ever be able to afford a new car?

If new car prices continue rising at their current pace—averaging around 0.92% annually since 2022, but with recent spikes pushing the average above $50,000—car ownership could become increasingly out of reach for many Americans, reshaping consumer behavior, financing trends, and even urban mobility. Here’s a breakdown of what might unfold if this trend persists: --- 🚗 Current Price Trends • Average new car price in September 2025: $50,080, a record high.

• Annual inflation rate for new cars (2022–2025): 0.92%, though 2022 alone saw a 11.07% jump. • Compared to pre-pandemic levels: Prices are up 30%. • Drivers of cost: Tariffs, rising interest in EVs and luxury models, and higher loan rates (6.7% for new cars). --- 🔮 Predicted Impacts if Prices Keep Rising 1. Affordability Crisis • Middle-income buyers may be priced out of the new car market. • Used car demand will surge, pushing up prices and reducing availability of reliable options under $10,000. 2. Financing Pressure • Higher prices mean larger loans and longer terms. • Interest rates are already climbing—6.7% for new cars, 11.9% for used—increasing total cost of ownership. 3. Shift in Consumer Behavior • Buyers may delay purchases, opt for leasing, or turn to car-sharing services. • EV adoption could accelerate if incentives offset rising sticker prices. 4. Market Polarization • Luxury and tech-heavy models may dominate new sales. • Budget-friendly models could dwindle, leaving fewer options for cost-conscious buyers. 5. Urban Mobility Evolution • Rising costs may push cities to invest more in public transit, micromobility (e-bikes, scooters), and infrastructure for shared vehicles. --- 📉 Long-Term Forecast • If the 0.92% annual increase holds steady, a $50,000 car today could cost $52,300 by 2028. • But if the recent spike (e.g., 11% in 2022) repeats, prices could exceed $60,000 within 3 years, dramatically altering the landscape. ---