The Backlash Against Car Prices Is Here
There’s plenty of blame to go around, and no easy fix.
TL;DR
- New car prices have surged, with significant increases noted in models like the Toyota RAV4 and Chevrolet Suburban over the last five years.
- The average price of a new car reached a high of approximately $50,000 in 2025.
- Factors contributing to price increases include lingering inflation, supply chain disruptions from the pandemic, and a consumer shift towards more expensive SUVs and trucks.
- Automakers have prioritized larger, higher-profit vehicles, which also helps fund electric vehicle development.
- Political responses include former President Trump's actions on fuel-efficiency standards and tariffs, and Senate Republicans calling industry executives to testify.
- Affordable, smaller car models have been discontinued in the U.S., with similar options more readily available in Europe.
- While EV prices are decreasing, a broad decline in car prices is not anticipated in the near future.
- The used car market and repair costs have also become more expensive.
- For many Americans, cars are essential due to a lack of public transportation, making affordability a critical issue impacting mobility and economic opportunity.