Core Insights - Vehicle affordability is a significant concern for consumers and dealers, with the average new-vehicle transaction price exceeding $50,000 for the first time in September, reaching $50,080, a 3.6% increase year-over-year [1][2] Long-term Factors - Long-term trends indicate rising vehicle prices due to affluent buyers driving demand for higher-priced models, supported by access to capital and favorable loan rates [3] - A shift in consumer preferences from smaller, cheaper passenger cars to larger, more expensive pickups, SUVs, and crossovers is contributing to higher average vehicle prices, as domestic OEMs focus on more profitable segments [5] Short-term Factors - Short-term price increases are influenced by the growing sales of electric vehicles (EVs), which accounted for 10.5% market share in September, driven by consumers aiming to benefit from the expiring $7,500 federal EV tax credit [7] - The introduction of new 2026 models is also impacting average new vehicle prices, as these vehicles typically come with price increases [8] - High interest rates remain a concern, with the average new-vehicle interest rate at 9.43% in September, while used vehicles averaged 14.12% [6]