$48,402 was the average new-vehicle transaction price in 2025, up more than $11,000 from 2019 and deepening affordability pressure on budget buyers.
Just 0.2% of new vehicles sold for $20,000 or less in 2025, while models under $30,000 fell to 15% of sales from 40% as subcompacts largely disappeared.
22.9% of financed new-car purchases in Q1 2026 carried terms of 84 months or longer, an Edmunds record as buyers stretched to keep monthly payments manageable.
Dealers are increasingly relying on finance-and-insurance income and service operations because squeezed shoppers are either moving to used vehicles or leaving the market.
Automakers now face a broader strategic choice: revive affordable entry-level models or give up that buyer segment as large SUVs and trucks keep moving upmarket.