Buying a car? Here are some tips to save money.
Car prices are rising significantly, with new vehicle costs averaging nearly $50,000 and used cars averaging $25,390. High inflation and a preference for larger vehicles are contributing to these increases, making it difficult for many consumers to afford new cars. Financing options are becoming more stretched, with many Americans opting for longer loan terms to manage monthly payments.
- ▪The average new car price reached nearly $50,000 in March 2026, a 3.5% increase from the previous year.
- ▪Used car prices also remain high, averaging $25,390 in March 2026.
- ▪Stubborn inflation at 3.8% and a trend towards larger vehicles are driving up car costs.
- ▪Many consumers are extending auto loan terms to make monthly payments more manageable, with some financing for up to 84 months.
- ▪Experts advise against spending more than half of a car's value on repairs for older vehicles.
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MoneyWatch How to save money when shopping for a car and other important considerations .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Megan Cerullo Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo Updated on: May 25, 2026 / 12:28 PM EDT / CBS News Add CBS News on Google Buckle up for both high gas prices and rising new and used vehicle prices.
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