Car Price Inflation Is Real – These Brands Are the Worst
The automotive sector has seen unprecedented economic shifts in the past five years, with average transaction prices for new cars increasing significantly.
Key Takeaways:
- Car price increases have outpaced inflation over the last five years.
- Hyundai Motor Group and Honda experienced the largest price hikes between 2019 and 2024.
- In 2025, the average new car sells for nearly $50,000.
From the end of 2019 to the end of 2024, the average transaction price for a new car jumped by 34%, reaching almost $50,000. While a few brands have managed to keep price increases relatively low, others have seen dramatic increases.
Hyundai and Kia Prices Jump 36% in 5 Years
Leading the surge in price increases is the Hyundai Motor Group, which includes Hyundai, Kia, and Genesis. This group witnessed a 36% increase. This far exceeds the overall inflation rate of 23% over the same time period. Honda wasn’t far behind, with a 35% increase resulting from higher MSRPs and consumer interest in larger SUVs. For example, the base MSRP of Honda’s popular CR-V crossover rose from $25,345 in 2019 to $31,450.
Stellantis and Toyota followed, with a 31% price inflation between 2019 and 2024. All major car brands, except for Nissan, Subaru, and Mazda exceeded the general rate of inflation during this time. Unlike Hyundai, Kia, Honda, and Toyota, Stellantis has experienced a sharp decrease in sales.
Subaru, Nissan and Mazda Prices Increased the Least
Subaru stood out by keeping its transaction price increase limited to “only” 14% over the five-year period, significantly below the overall inflation rate. This strategy may have supported Subaru’s gains in market share, particularly due to their standard all-wheel drive offerings.
Nissan, on the other hand, has seen decreased demand, meaning less opportunity to raise prices. From 2019, Nissan’s transaction prices went up by 19%. Recently, one of their popular models, the Altima, was discontinued after three decades.
During the same time, Mazda prices increased by 20%.
Luxury Car Prices Have Risen 25%
Despite luxury cars’ growing popularity and higher price points, luxury vehicles have not climbed quite as much. While mainstream car brands saw prices increase 27%, luxury brands increased by 25% from Q4 2019 to Q4 2024.
Prices for new Mercedes-Benz, Land Rover, and Acura cars have risen more dramatically compared to their luxury competition.
