Buying a new car has 'never been more expensive' — thanks to Trump: CNN analyst

Many voters elected President Donald Trump because he claimed he would cut inflation, but that does not apply to the automobile market, according to rating agencies.

“Prepare yourself because it's literally never been more expensive to buy a new car,” said CNN analyst Matt Egan. “Kelley Blue Book says that the average transaction price in September topped $50,000 for the first time ever. That's 4 percent more expensive than the same month last year.”

Egan described this as “the biggest increase year over year since 2023," and for average-sized U.S. vehicles, the price was even higher.

“That's just the average price,” Egan said. “Say you're in the market for a full-size car, you've got to be spending an average of almost $60,000; for a full-size pickup, $66,000, and SUVs averaging $76,000.”

“So, what's behind these record-high prices? Well, Kelley Blue Book says that one factor here is tariffs,” Egan added. “Tariffs are adding to the cost of building a car. It's not just the auto tariffs. It's the tariffs on car parts and the tariffs on steel, aluminum, and copper as well.”

But, by far, the biggest factor influencing new car prices is who is buying the cars, according to Kelly Blue Book. Modest-income buyers can no longer buy new cars since the November election.

“The $20,000 cars have basically gone extinct,” reported Egan. “Car makers are focusing on the higher margin, more expensive cars [because] … a lot of the cost-conscious consumers are not able to buy cars right now. A lot of them are focusing on used cars. They've been priced out of the market, but more affluent buyers are in the market, and they're buying more expensive cars. So that's pushing up the average.”

Egan said the numbers are another reminder of the “K-shaped economy” where “people who have money in the market, money in housing are doing okay and they're buying cars. But a lot of lower-income families are not buying cars right now because they're struggling to get by.”