Car prices hit an average of $50,000 for the first time—here's how much you'd pay per month

New-car prices have never been higher.

The average sale price reached $50,080 in September, marking the first time it has topped $50,000, according to Kelley Blue Book.

The milestone came as shoppers rushed to buy electric vehicles before a $7,500 federal tax credit expired on Sept. 30, with EVs selling for an average of $58,124, which helped push overall prices higher, according to KBB.

While new-car prices typically rise in early fall, September’s year-over-year increase was the largest since the spring of 2023, driven by EV purchases, higher luxury sales and, to a lesser extent, tariffs, KBB says.

“Now that [the EV] incentive is gone, it’s possible that electric vehicle sales will drop off somewhat and the average transaction price may dip below $50,000 in the later part of the year,” Brian Moody, executive editor for Kelley Blue Book, tells CNBC Make It.