Our Troubles Are Over: The Average Price Of A New Car Was Closer To $49,000 Than $50,000 In May

Look, you're sick of hearing about it, we're sick of hearing about, and your bank account is definitely sick of hearing about it, but it feels like absolutely everything has become hella expensive these days, and new cars are no exception—the average transaction price for a new ride crested $50,000 for the first time ever back in October. But perhaps we're on our way to some relief because, that number cooled back down to $49,220 in May. Rejoice, the economy is saved.

According to Kelley Blue Book, this number is down from $49,456 in April but is still up by 1.2% compared to May of last year (although the typical year-over-year rise is 3.5% long term). High prices have naturally resulted in fewer Americans on average buying new cars every year. Pre-pandemic, the country saw about 17 million new-car purchases annually but 2026 is on-track to see fewer than 16 million. Yes, about a million would-be new-car buyers are being driven out of the market.

And if your rebuttal to all this is any shade of "Put down the avocado toast and buy a used car, no one's entitled to a new car," unfortunately, the crippled supply of new cars has led to increased used prices as well.

According to Cox Automotive chief economist Jeremy Robb speaking to CNBC, the pandemic and the production shutdowns it caused has resulted in 8 million missing new vehicles that would've been built for the U.S. but never were. And the used car ecosystem (every used car is a former new car, remember) still hasn't really recovered from that crater in supply.

Add ballooning insurance premiums and gas prices to the equation, and some might argue that in 2026 America, owning a car—any car, not just a new one—has become a straight-up luxury. However, perhaps if we can get the average transaction price down to a paltry $48,999 for June, maybe we can all get to a place in which owning a home isn't a pipe dream for the average young person again.