News · Markets & Money · Washington, D.C.
Economist Says Average New Car Now Costs About $50,000 as Affordability Becomes Midterm Issue
The average price of a new vehicle in the United States has climbed to roughly $50,000, according to a Virginia Tech economist interviewed by Gray DC in a report carried by Live 5 News, 1011 Now, WABI and WKYT.
The report frames transportation as a frequently overlooked part of the broader cost-of-living debate, which it describes as a central issue heading into the 2026 midterm elections. It notes that for most Americans a car is now treated as a necessity rather than a luxury.
Dr. David Bieri, the economist, told Gray DC that the average price is equal to a large share of a typical worker's annual earnings. "In terms of median income, that's close to about eight months' worth of pay," he said.
Bieri said new car sales are still strong, but described the market as complicated. He pointed to rising insurance premiums, inflation and continuing tariffs as factors pushing costs higher.
He also said "pay as you go" payment arrangements are gaining popularity. According to the report, Bieri cautioned that these plans can at times lead buyers to purchase vehicles beyond what they can afford.
Among the biggest problems, Bieri said, is the shortage of lower-priced vehicles manufactured in the United States. "We don't really have any domestic low end entry points," he told Gray DC.
The report states that overall vehicle expenses, including loan or lease payments, fuel and upkeep, account for 10% to 20% or more of Americans' monthly income.
Bieri argued that prices are only part of the affordability picture. He said wages for some groups of workers have not kept pace, and that broader wage growth could substantially ease the strain on household budgets.
The report noted that the federal minimum wage was last increased in 2009.
Compiled by True News from reporting by Live 5 News, 1011 Now, WABI and WKYT. Each outlet's original story is linked below.
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