car buyers Across America are dropping out of the new car market and instead are purchasing used vehicles and who can blame them new car prices now average more than $48,000 of 21% from 5 years ago monthly car payments average $767 that’s up 177% since 2020 and one in six Americans now makes a monthly car payment of more than $1,000 so why are car prices reaching record levels well automakers are loading new models with expensive technology like dashboard touch screens and arrays of Crash avoidance sensors and cameras plus automakers and their investors are in a quest for ever fatter profit margins higher prices lead to rec profits making matters worse costly financing loan rates on new cars now average 7.1% that’s up from 5.7% 5 years ago and those rates are expected to remain stubbornly high the result the autoa affordability crisis is laying waste to a fundamental American aspiration a new car in the driveway