Car cost breakdown
New and used car prices are up 1% to 2% year over year, and new EV sales are down over 40%.
New car prices
The average cost of a new car was $49,814 in November 2025, representing a 1.3% increase from the previous year, according to Kelley Blue Book.
Used car prices
According to Kelley Blue Book, the average cost of a used car was $25,945 in November 2025, an increase of 2% from one year ago.
Electric vehicle prices
The average cost for a new EV was $58,638 as of November 2025, according to Kelley Blue Book. New EV sales were down 41.2% in November compared to one year ago, and EV sales only made up 5.4% of new car sales in November, according to Cox Automotive. Sales were likely down due to the federal EV tax credit ending in September.
» MORE: Do You Really Need a New Car?
Car purchase fees by state
While the manufacturer sets the manufacturer’s suggested retail price (MSRP) for a vehicle, registration and documentation fees vary widely by state. Some states administer flat fees, and others charge by vehicle type, weight, miles per gallon and other factors. Title fees are usually a one-time expense and are more consistent across states.
Florida, Virginia, Colorado and North Carolina have the highest average documentation fees, ranging between $699 and $999, while Wisconsin, Illinois and Oregon have the highest title fees, ranging between $106 and $165. California has the highest sales tax rate at 7.25%.
In comparison, New Mexico, Arizona, North Dakota and Hawaii have the least expensive title fees, ranging from $3 to $5, and Alaska, Delaware, Montana, New Hampshire and Oregon have no sales tax. California, Minnesota and Arkansas have the least expensive average documentation fees, ranging from $85 to $129.
The table below shows each state’s sales tax rate, average documentation fee and title fee.
| State | State sales tax rate | Average documentation fee | Title fee |
|---|---|---|---|
| Alabama | 4.00% | $489 | $18 |
| Alaska | 0.00% | $299 | $15 |
| Arizona | 5.60% | $499 | $4 |
| Arkansas | 6.50% | $129 | $10 |
| California | 7.25% | $85 | $25 |
| Colorado | 2.90% | $699 | $7 |
| Connecticut | 6.35% | $599 | $25 |
| Delaware | 0.00% | $475 | $35 |
| Florida | 6.00% | $999 | $75 |
| Georgia | 4.00% | $599 | $18 |
| Hawaii | 4.00% | $395 | $5 |
| Idaho | 6.00% | $399 | $14 |
| Illinois | 6.25% | $347 | $155 |
| Indiana | 7.00% | $199 | $15 |
| Iowa | 6.00% | $180 | $25 |
| Kansas | 6.50% | $499 | $10 |
| Kentucky | 6.00% | $450 | $6 |
| Louisiana | 5.00% | $425 | $77 |
| Maine | 5.50% | $499 | $33 |
| Maryland | 6.00% | $499 | $100 |
| Massachusetts | 6.25% | $459 | $75 |
| Michigan | 6.00% | $260 | $15 |
| Minnesota | 6.875% | $125 | $8 |
| Mississippi | 7.00% | $425 | $8 |
| Missouri | 4.225% | $565 | $9 |
| Montana | 0.00% | $299 | $12 |
| Nebraska | 5.50% | $299 | $10 |
| Nevada | 6.85% | $499 | $20 |
| New Hampshire | 0.00% | $375 | $25 |
| New Jersey | 6.625% | $695 | $60 |
| New Mexico | 4.875% | $339 | $3 |
| New York | 4.00% | $175 | $50 |
| North Carolina | 4.75% | $699 | $56 |
| North Dakota | 5.00% | $299 | $5 |
| Ohio | 5.75% | $250 | $15 |
| Oklahoma | 4.50% | $599 | $11 |
| Oregon | 0.00% | $250 | $106 |
| Pennsylvania | 6.00% | $449 | $58 |
| Rhode Island | 7.00% | $399 | $53 |
| South Carolina | 6.00% | $400 | $15 |
| South Dakota | 4.20% | $200 | $10 |
| Tennessee | 7.00% | $499 | $14 |
| Texas | 6.25% | $150 | $33 |
| Utah | 6.10% | $299 | $6 |
| Vermont | 6.00% | $200 | $35 |
| Virginia | 5.30% | $799 | $15 |
| Washington | 6.50% | $199 | $15 |
| Washington, D.C. | 6.00% | $300 | $26 |
| West Virginia | 6.00% | $250 | $15 |
| Wisconsin | 5.00% | $299 | $165 |
| Wyoming | 4.00% | $500 | $15 |
Factors that influence car prices for trade in
Trade-in value is the amount that a dealer will deduct from your new car purchase based on the value of your used car. The resale value estimates a car’s market value, or how much it will sell for.
Some factors that influence trade-in value include:
Depreciation
Depreciation refers to the loss of value over time, primarily due to wear and tear. A new vehicle begins to lose value the moment it leaves the lot. Vehicles lose about 20% of their value within the first year of ownership and around 60% after five years, according to Kelley Blue Book.
Age and mileage
The older the vehicle, the less credit you’re likely to receive for a trade-in, except for certain models. High-mileage vehicles are also worth less than low-mileage vehicles, but depreciation slows after about 100,000 miles, according to Kelley Blue Book.
Condition and modifications
A vehicle’s condition due to wear and tear will affect its trade-in value. Also, aftermarket modifications can cause depreciation because they may deter potential buyers.
Brand reputation
If a particular automaker’s vehicles are known to be reliable, they will have more value at trade-in. For instance, in Kelley Blue Book’s 2025 Best Resale Value Awards, Toyota won Best Brand for the eighth time in nine years. Five of its models also made Kelley Blue Book’s top 10 list for vehicles with the best resale value.
| Model | 5-Year Resale Value |
|---|---|
| 2025 Toyota Tacoma | 64.1% |
| 2025 Chevrolet Corvette | 61.0% |
| 2025 Toyota Tundra | 60.9% |
| 2025 Toyota 4Runner | 60.0% |
| 2025 Ford Bronco | 57.0% |
| 2025 Mercedes-Benz G-Class | 56.6% |
| 2025 Honda CR-V | 54.4% |
| 2025 Toyota RAV4 | 53.9% |
| 2025 Porsche 911 | 53.8% |
| 2025 Toyota GR Supra | 53.7% |
Car price trends and projections
Over the last decade, both new and used vehicle prices have steadily increased. In 2019, the average cost of a new car was a little over $36,000, and by 2022, the average price increased by nearly $10,000. Part of this increase was related to the COVID-19 pandemic, which caused global supply chain shortages of chips and other crucial car parts.
Average new vehicle price, 2019 to 2025
The table below shows the average retail selling price for new vehicles from 2019 to 2025.
| Year | Average retail selling price for new vehicles |
|---|---|
| 2019 | $36,402 |
| 2020 | $38,043 |
| 2021 | $40,232 |
| 2022 | $45,646 |
| 2023 | $47,331 |
| 2024 | $47,278 |
| 2025 | $47,971 |
» MORE: New Car Statistics 2025
Average used vehicle price, 2019 to 2025
The table below shows the average retail selling price for used vehicles from 2019 to 2025.
| Year | Average retail selling price for used vehicles |
|---|---|
| 2019 | $20,840 |
| 2020 | $21,210 |
| 2021 | $24,540 |
| 2022 | $30,800 |
| 2023 | $29,590 |
| 2024 | $28,300 |
| 2025 | $28,600 |
» MORE: Used Car Statistics 2025
Current trends and projections
While the market has started to normalize since the pandemic, the new U.S. tariff policy has caused vehicle prices to increase and inventory to decrease, according to the National Automobile Dealers Association (NADA)’s 2025 Mid-Year Report. This policy caused new vehicle inventory to decline in the first half of 2025, partially due to tariffs on imported vehicles and auto parts.
Despite the tariff policy and inventory changes, NADA also reported that the average U.S. dealership experienced increased revenue in the first half of 2025. New and used vehicle sales have also remained fairly steady from 2024 to 2025, with new vehicles making up 54.2% of total dealership sales and used vehicles making up 32.6%.
New and used car sales are expected to decrease from 2025 to 2026, according to Cox Automotive. Car prices are expected to increase slightly over the year, though prices should remain fairly stable, and prices are unlikely to increase or decrease significantly. Still, prices could increase more if tariff policy fluctuates, according to Kelley Blue Book.
FAQ
How can I get the best value for a trade-in?
When trading in your car, be sure to do your research on pricing so you can negotiate a fair value for it. Additionally, it can be helpful to make cosmetic repairs and address any engine issues to increase its value.
Is owning a car expensive?
Yes, owning a car can be expensive depending on what type of car you buy, where you live, fuel costs, how much you drive, ongoing maintenance or repair costs, and insurance costs, among other factors.
Is $10,000 a good budget for a car?
With the current used vehicle price hovering around $26,000 on average, it may be challenging to find a used car for around $10,000. However, you may be able to find a much older model for around $10,000, particularly if you’re able to find a car that’s for sale by its owner instead of an auto retailer.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- CarEdge, “Car Dealer Doc Fee by State in 2025.” Accessed Dec. 23, 2025.
- Cox Automotive, “EV Market Monitor – November 2025.” Accessed Dec. 23, 2025.
- Cox Automotive, “2026 Cox Automotive Forecasts.” Accessed Dec. 23, 2025.
- Kelley Blue Book, “Average New Car Price Flirts With $50,000.” Accessed Dec. 23, 2025.
- Kelley Blue Book, “Average Used Car Price Rises Modestly.” Accessed Dec. 23, 2025.
- Kelley Blue Book, “EVs Made Up Just 5.4% of New Car Sales in November.” Accessed Dec. 23, 2025.
- Kelley Blue Book, “How To Beat Car Depreciation.” Accessed Dec. 23, 2025.
- Kelley Blue Book, “Car Trade-in Tips: How Can I Maximize My Car’s Value?” Accessed Dec. 23, 2025.
- Kelley Blue Book, “When Will New Car Prices Drop?” Accessed Dec. 23, 2025.
- National Automobile Dealers Association, “NADA Data 2025: Midyear Report." Accessed Dec. 23, 2025.
- Tax Foundation, “State and Local Sales Tax Rates, Midyear 2025.” Accessed Dec. 23, 2025.
