The Average New Car Now Costs More Than $51,000, a Record

Buying a new car has never cost more.

The average transaction price for a new vehicle in the U.S. has climbed to a record of more than $51,000, according to Kelley Blue Book, NPR reported ^[1].

To afford those prices, some buyers are extending their car loans, which lowers the monthly payment but means paying more interest and owing more than the car is worth for longer ^[1].

Open Road's advice for anyone shopping this fall: get pre-approved by a bank or credit union before you walk into the dealership, keep the loan to 60 months or less if you can, and look hard at lightly used models coming off leases.

With the Federal Reserve signaling more rate hikes, financing is not getting cheaper soon. A $51,000 price tag is a lot of money for a family budget, and the dealer's monthly-payment pitch can hide how much.