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Shifting gears on automotive pricing

2 0
03.11.2025

Have you checked car prices lately? Not the cost of 2025 models --look ahead to 2026. And prepare yourself for sticker shock.

According to CarEdge CEO Zach Shefska, the average new-car transaction price has now surpassed $50,000 for the first time.

Eeep. I thought my yellow-and-black 1974 Opel Rallye, the first brand-new car I ever bought, was pricey at $3,500. Turns out that $3,500 in 1974 is equivalent in purchasing power to about $23,000 and some change today--an increase of $19,500 over 51 years. The dollar has had an average inflation rate of 3.76 percent per year since then, producing a cumulative price increase of 557.15 percent.

I barely made it through eighth-grade algebra (let alone geometry), but I know a sizable increase when I see one.

CarEdge, founded in 2020 by Shefska and his son Ray to make buying, owning, and selling a car less painful, reports that manufacturers with the most unnerving price hikes coming in the 2026 model year include:

The 2026 Subaru Outback at $36,445, up $5,030 compared to 2025. Subaru manages this by dropping the previous base trim, effectively raising the entry price by roughly $5,000 overnight.

mThe 2026 Volkswagen Jetta SE jumps from $25,775 to $26,985, and the 2026 SUV Taos' base cost climbs by $1,055.

The base price of Hyundai's redesigned 2026 Palisade SE, a three-row SUV with upscale ambitions, rises $1,735 to $40,430.

BMW vehicles (sold in the U.S. since 1956 and manufactured here since 1994)........

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