Your Money Minute New Car Prices Top $50,000 For First Time 10/31/25
Oct 31, 2025
Mark Fields, former CEO of Ford Motor Company, shares insights on why new car prices have crossed the $50,000 mark for the first time. He discusses automakers' strategies in response to tariffs and how they might cut features to manage rising costs. Fields also highlights the role of affluent buyers and loan accessibility in driving up prices. This timely conversation sheds light on the automotive industry's challenges amidst economic shifts.
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Record High New Car Prices
- The average new-car selling price in the U.S. topped $50,000 for the first time in September.
- Mark Fields says automakers absorbed tariffs but are raising prices and decontenting models to manage costs.
Anticipate Decontenting And Price Hikes
- Expect automakers to raise prices and remove some features to hold sticker prices down.
- Factor potential decontenting into purchase comparisons and negotiations.
Who’s Paying Higher Prices
- Cox Automotive reports the average price paid for a new car surpassed $50,000 and the average payment is $750 per month.
- A Cox analyst attributes higher prices partly to tariffs and partly to wealthier buyers with access to loans.