Business, Finance & Tech
Cheap New Cars Are Getting Harder to Find as Prices Rise
Finding an inexpensive new car is becoming increasingly difficult in the United States, as automakers focus on more profitable SUVs and trucks and rising production costs push vehicle prices higher.
During the first six months of 2026, only 4% of U.S. new car sales were priced below $25,000, according to Edmunds data. Another 10% fell between $25,000 and $30,000. Just over a decade ago, most new American cars sold for less than $30,000, with nearly one-third priced below $25,000.
The shift is evident at dealerships. Bob Kain, who sells cars at Kain Ford outside Lexington, Kentucky, recalled seeing a Ford Crown Victoria priced at $25,000 in 1989 and thinking it would be difficult to sell.
Today, the least expensive vehicle on his lot is a Ford Bronco Sport, with a sticker price between $36,000 and $40,000. The average sticker price at the dealership is about $54,000.
"It’s amazing how people adapt to changing prices," Kain said.
According to Edmunds, car prices have increased 49% since 2015, outpacing overall inflation. Automakers have increasingly concentrated on larger SUVs and pickups equipped with features that can generate higher profits.
Ivan Drury, director of insights at Edmunds, said automakers may sell more vehicles by offering cars in the $20,000 to $25,000 range, but the economics increasingly favor more expensive models.
The decline in affordable new cars also comes as auto tariffs increase production costs and affect the availability of some lower-priced models. The Nissan Versa, once one of the least expensive new cars available, was discontinued at the end of 2025.
Used cars offer another option, but prices and financing costs can make them less attractive. The average price for a new vehicle in July was about $49,000, compared with $32,000 for a used vehicle three years old or newer, according to Edmunds.
Higher interest rates have also added to the affordability challenge. The average rate on a five-year auto loan was 4.4% in August 2015, compared with just under 7% in May 2026. More than 20% of Americans were paying more than $1,000 a month on new-car loans at the end of last year, according to Edmunds.
Some companies are trying to bring lower-priced vehicles back to the market. Slate Auto plans to begin delivering an electric pickup truck late this year with a list price of $24,950. The stripped-down truck will not include features such as power windows or a second row of seats, and it will be sold without paint.
Ford and Stellantis have also announced plans for more affordable models, but those vehicles are not expected until before 2030 and will be priced below $40,000 — a figure that would have been considered considerably more expensive in the past.
Explore: NBCPalmSprings.com, where we are connecting the Valley.
By: NBC Palm Springs
September 1, 2026
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