A car dealership in Daly City, Calif., on Feb. 13, 2026. Jason Henry for California PostAmericans are driving straight into a new era of higher car costs.The average price of a new car is drifting toward $50,000 as Kelley Blue Book data revealed the American new-car buyer paid $49,220 in May.Other reports from Cars.com confirmed that prices are rising, revealing that the average sticker tag is just above $50,000. And rates are only growing, as data from Kelley Blue Book shows a 1.2% year-over-year increase.The average price of a new car is drifting toward $50,000 as Kelley Blue Book data revealed the American new-car buyer paid $49,220 in May. APJust 15 years ago, the average price for a new car was only $29,000 to $30,000. During that period, the U.S. Bureau of Labor Statistics reported inflation was at a steady 3.0% — from December-to-December. AdvertisementAdvertisementHowever, things are a bit different today. Americans are looking at an inflation rate of about 4.2% to 4.3% year-over-year from May. This was the most stark increase in about three years, and largely in part by the war in Iran putting extra pressure on prices.There's another reason behind the price increase, though, and it's slightly complicated.It's not just about manufacturing costs — which are rising. It's also, per reports in Forbes, because car makers are prioritizing high end finishes like leather trims, touchscreens, sophisticated entertainment systems and more.Because consumers are willing, and want, to pay for them.AdvertisementAdvertisementAt the same time, as gas prices continue to soar, Kelley Blue Book parent company Cox Automotive revealed that 76% of people searching for cars say they want models that are either electric or fuel efficient.These cars are also sometimes in the more expensive categories.For example, the Lexus NX starts at $45,000, but quickly goes up to about $53,000 based on the package.As it's Toyota-owned, the NX car itself is practical, well built and packed with the essentials. The luxury SUV gets 25 miles per gallon, has a nifty five seats and offers that quiet comfort drivers like.White Toyota Corolla in Kyiv, Ukraine. vector_master – stock.adobe.comKia has also become a major player in the $50,000 range. The EV6 Wind AWD is its mid-level electric crossover and features dual-motor all-wheel drive, with 320 horsepower.AdvertisementAdvertisementIt has an EPA-estimated range of 295–319 miles per charge — and fast 800V charging capability — all for around $54,300. So a bit pricer but gives drivers a bit more.Despite the daunting price tag, there are still affordable buys and folks who have an appetite for a better deal. In fact, many are even American-made with a much prettier price — all under $35,000.For example, the auto giant behind Chrysler, Jeep and Ram announced plans to drop a score of new, lower-priced cars with models less than $30,000.Chrysler will now add three new crossover utility vehicles to its lineup, including two priced at less than $30,000. Parent company Stellantis announced that nine new models under $40,000 will hit the market by 2030.AdvertisementAdvertisementRecently, Cars.com posted its most affordable cars from its American Made Index, where Toyota took the top spot with the most vehicles made right in the USA. The report found 86 vehicles that qualified but highlighted just a few of the greatest gets. Just note that all prices listed are for the base model, no frills or add-ons here. First up is a classic and no surprise to drivers looking for a deal.A Toyota Corolla Altis, the twelfth generation in Thailand nitinut380 – stock.adobe.comThe car's most affordable model is the Toyota Corolla LE, priced at only $24,420. This is an entry-level gas and hybrid sedan known for great fuel efficiency and standard modern tech.The brand says it's the perfect choice for budget-conscious commuters and daily drivers as it gets up to 32 miles per gallon in the city and 41 on highways for its gas models. Its hybrid variants have an incredible 53 miles per gallon in the city and 46 on the highway.AdvertisementAdvertisementHitting the chart at number two is the Honda Civic LX with a sticker price of $25,890. This car is a sedan-only base with a 2.0-liter, 4-cylinder paired with a Continuously Variable Transmission and front-wheel drive.Drivers can score an estimated 32 miles per gallon in the city and 41 on the highway. It comes pretty stacked, too, as the base model gets a seven-inch touchscreen with wired Apple CarPlay and Android Auto.Other features include the full Honda Sensing suite of driver-assist technologies and adaptive cruise control.Americans are driving straight into a new era of higher car costs. Jason Henry for CA PostNumber three is Toyota's Corolla Cross L for only $26,830. The affordable buy has a 2.0L 4-cylinder engine packing a punch with 169 horsepower.AdvertisementAdvertisementBase models have the standard wireless Apple CarPlay and Android Auto compatibility, Toyota Safety Sense 3.0, featuring pre-collision systems, lane tracing assist and dynamic radar cruise control.Coming in at number four is the Subaru Crosstrek Base for a cool $28,415. Equipped with a 180-horsepower 2.5-liter engine, the car is a compact crossover. Hitting the list at number five is the Nissan Altima SV for just $28,825. Each base model features a standard 188-horsepower 2.5L engine, a 12.3-inch touchscreen and available all-wheel drive. Christopher SadowskiOther features include dual seven-inch infotainment screens, EyeSight Driver Assist Technology, dual seven-inch multimedia touchscreens with Apple CarPlay and Android Auto compatibility.Hitting the list at number five is the Nissan Altima SV for just $28,825. Each base model features a standard 188-horsepower 2.5L engine, a 12.3-inch touchscreen and available all-wheel drive.AdvertisementAdvertisementThe Altima comes with a combined rating of approximately 31-32 miles per gallon, a 12.3-inch color touch-screen display featuring wireless Apple CarPlay and Android Auto and some fancy features.Each has a push-button ignition, dual-zone automatic climate control and a power-adjustable driver's seat.For the full list of affordable cars, check out the Cars.com American Made Index.
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