Are new cars becoming a luxury item in America?

Americans are increasingly getting priced out of the new car market as prices remain elevated. 

The average transaction price for a new car in April 2025 was $48,422, slightly higher than average for the previous 12 months, according to Edmunds data, published June 2025. However, there is a significant price disparity when compared with used cars.

The average transaction price for new cars was more than 29% higher and 35% higher compared to 3-year-old used cars in April 2025 than in April 2020, according to Edmunds sales data.