Is Now a Good Time to Buy a Car? What KBB Says

The average price of a new vehicle reached over $49,000 in February 2026, marking a 3.4% increase compared to February 2025. While this represents a significant inflationary trend, data from Kelley Blue Book indicates that the increase is primarily driven by consumer demand for high-cost vehicles, specifically full-size trucks.

In February 2026, buyers of full-size trucks paid an average of more than $66,000. When these specific vehicles are removed from the data, the average purchase price for a new car drops to $39,000.

This tells a very different affordability story

Erin Keating, Executive Analyst at Kelley Blue Book

Affordable Vehicle Options in 2026

Despite the rise in overall averages, affordable options remain available for consumers in April 2026. Compact SUVs, for instance, had an average price of $36,807 in February 2026.

Several 2026 models provide a balance of efficiency and modern technology without the costs associated with luxury SUVs. Verified pricing from February 2026 includes:

• 2026 Mazda CX-50: $31,395
• 2026 Honda CR-V: $32,370
• 2026 Toyota RAV4: $33,350

Regulatory Impact and Tariff Uncertainty

The automotive industry continues to face volatility due to trade policies. Tariffs implemented by the Trump Administration cost automakers nearly $35 billion, with companies paying between 15% and 25% on imported vehicles depending on the country of origin.

In February 2026, the Supreme Court ruled that these tariffs were illegal. However, the tariffs remain in place as of April 2026, creating a state of confusion within the market.

This regulatory environment has contributed to shifting prices as automakers manage the ongoing costs and uncertainty surrounding imported vehicle valuations.

Experts at Kelley Blue Book suggest that while the market environment is complex, it remains a viable time to purchase a vehicle, provided that consumers shop smarter to navigate the current pricing shifts and available options.