By Reagan Steele – Business & Economic Policy Writer

A survey conducted by ABC News, the Washington Post, and Ipsos has revealed increasing numbers of Americans find that the cost of living is becoming unbearable, with new cars ranking at the top of things majorities of Americans now say they can’t afford, ranking ahead of vacations and healthcare, both of which were also reported as unaffordable by 50 percent or more of respondents, including people earning six figure incomes.

For Americans under 50, the sense that ever affording a new car is an impossibility was even greater at 80%. Among those earning less than $50,000 the percentage of people saying new cars are unaffordable went up to 87 percent.

These findings highlight several important realities about buying cars and Americans’ finances in 2026. 

What are these numbers really telling us and what are the takeaways for policymakers and everyday Americans?

New cars now average over $50,000

This month, the average new car MSRP exceeded the $50,000 mark according to Kelly Blue Book (KBB). KBB also declared new cars under $20,000 are likely a thing of the past.

More smart car buyers buying used

Cars now last longer than ever, making a used car a solid option. Cars now regularly last 150,000–200,000 miles, making the value gap between new and used wider than at any point in modern auto history.

Cars lose a significant portion of their value as soon as they roll off the lot. You can often cut your expenses in half or more simply by waiting a few years and still get a car with years of tens of thousands of miles of life in it to go.

Some studies suggest up to 74 percent of car purchases are now used vehicles.

The preference to go the used route makes even more sense when you consider how many – 80 to 85 percent – of new car buyers take out loans. Average payments are now at about $740/month and 20 percent pay more than $1000. 

Given these numbers, financial expert Dave Ramsey recommends nobody buy a brand new car until they have a net worth exceeding $1 million.

A role for policymakers

A look at cars available in other countries shows that $50,000 cars does not necessarily need to be the rule were it not for laws set by politicians. The Mahindra Thar, India’s version of a Jeep Wrangler begins at a relatively accessible $12,000 -13,500 USD. Such a vehicle is just one example of one that could not be sold in America due to the amount of safety and environmental regulations here.

A study by the Heritage Foundation found fuel efficiency standards alone added $3,800 to the price of new cars in 2016, with the amount of added costs projected to continue going higher.

The numbers tell a simple story: Americans still need cars, but new cars have drifted out of reach for most households — not because people suddenly got poorer, but because the cost of producing a compliant vehicle in the U.S. keeps rising. 

That gap didn’t happen on its own, and it won’t close without policymakers acknowledging the tradeoffs built into the current regulatory system.