New car prices are averaging close $50,000, and recent data shows near 10% of car buyers who take out loans for their vehicles are paying more than $1,000 monthly for their vehicles.
Consumers paid an average of $49,758 for new cars in June, according to Cox Automotive’s Kelley Blue Book. The average June price for new cars was up 0.4% from May’s average of $49,220, and up 0.6% over May 2025’s average of $48,907, according to the group.
Meanwhile, new data from Lending Tree shows 9.6% of Americans with active auto loans had at least one monthly payment of $1,000 or more. That’s also up from 8.6% last year. Lending Tree said a $1,000 car payment is the equivalent to 14% of the median household monthly income of $7,147.
“A $1,000 car payment is really, really high, but many Americans are clearly willing to take them on,” LendingTree chief consumer finance analyst Matt Schulz said in a statement.
“In much of this country, you can’t get by without a vehicle,” Schulz continued. “This isn’t just about what people need. It’s also about what they want, and Americans love their vehicles. That passion for cars, trucks and SUVs drives a whole lot of spending, too.”
With that in mind, the USA TODAY Cars team compiled some tips that experts say can help you negotiate like a pro the next time you buy a car.
Treat the Transaction as You Would Any Big Purchase
Brian Moody, a former executive editor for the car shopping site Autotrader, said to think of buying a car the same way you would any serious financial purchase. That means research it first, make an appointment and never buy on the same day that you shop.
“Before you go to a dealership in person, you should know quite a bit about the two or three cars you’re serious about,” Moody said. “That’s from online research, talking to neighbors and reading reviews.”
Also have the right mindset, said Ivan Drury, director of insights at Edmunds.com.
“You need to go into a negotiation with whatever makes you most comfortable. Have your favorite breakfast, hit the gym beforehand, go on a hike, watch your favorite Wall Street movie,” Drury said. “Whatever it is that puts you in the right space mentally to deal with a situation that involves making tough decisions, that is where you want your mind to be.”
Arm Yourself With Knowledge and Be Organized
Drury said it is critical to get as many comparable prices as you can on the vehicle you want and make sure they’re current.
Automakers change their incentives on vehicles every month, Drury said, and they are not specific to the calendar day. They’re on a sales day calendar, which has beginning and end dates that you won’t be familiar with, so open up the details of any incentive to find out the actual end date.
“Be organized,” Drury said. “It is easier to negotiate when you have all your paperwork in order, websites with calculators saved in one place, etc. Fumbling around looking for important things or trying to recall specific numbers in a high-pressure situation isn’t confidence-inspiring.”
He suggested printing some things out because flipping to specifics on paper is easier than showing someone something on a 6.5-inch screen.
Moody agreed, adding that research on incentives is crucial given all the tariffs or other global events that could impact pricing.
“You can’t say, ‘All Buicks are expensive and Nissans are not.’ It’s model by model. For example, Ford has its employee pricing through early July, but if you look at the small print there are many models that don’t apply. Nissan has actually lowered the prices on two of their cars, which is counterintuitive to what’s happening right now with tariffs. But Nissan makes a lot of their cars in the U.S.”
Questions to Ask About Financing
If you can afford to pay cash for a vehicle, that’s the wisest thing to do, Moody said. Unless they are offering 0% financing, then take that. There are some 1.9% and 3.9% financing deals out there as well that are good, and always take the shorter loan term because you have equity in the car sooner, he said.
You should note that the interest rate for a loan to buy a used car will typically be higher than rates to buy new cars. The experts said, for that reason, if you’re looking for a lightly used, newer model pre-owned car, it’s smart to look at a new car, too. If you get a lower interest rate on new car financing, it might make more sense to buy the new car.
Be armed with your credit score, Moody said. In fact, it is best to get pre-approved from your bank or credit union before negotiating on a car. While most dealerships have deep partnerships with many banks and will probably get you a better interest rate than your bank or credit union, there is a chance they might not. Which is why having a backup loan available is key.
Once the dealership gives you a price quote, ask for a printout of the exact numbers, fees and taxes so you can take it home and study it.
“Ask them: Is this the lowest interest rate that I qualify for?” Moody said. “Is the dealership adding any extra points to the loan? Is there a lower trim level that fits into my price level more?”
Trade-Ins as a Tool
Drury said your strongest negotiation tool might also carry the most variability: The vehicle in your driveway that you plan to trade in.
“It is imperative that you get it appraised from multiple buyers before you go to the dealership,” Drury said. “You want paperwork or emails that show what others are willing to pay. If you are fortunate enough to live in a state with a sales tax reduction through trade-in, get ready to do some math on how much lower of an offer you can take but still break even with tax savings accounted for.”
If a dealership can come close enough on the trade-in value, then sometimes it makes sense to perform the transaction all under one roof, Drury said. But getting the most for your trade-in can bring down your payments on the new vehicle.
No trade in? No problem, said Moody.
“If it’s a negotiating dealership you can always say, ‘I’d rather put this much down and pay this much a month.’ It’s always better to shop not by monthly payment,” Moody said. “I can sell you a Maserati for $300 a month, but it might be a terrible deal if you don’t know the rest of the terms. It could be for 1,000 months. You want the lowest down payment, lowest monthly payment and shortest months as possible.”
Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at [email protected]. Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY. Contact Keith at [email protected].
Reporting by Jamie L. LaReau and Keith Laing, Detroit Free Press / USA TODAY
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