US Car Prices Soar Within Less Than a Decade

Jakarta (ANTARA) - Car prices in the United States have soared within less than a decade, according to the latest report from The Century Foundation and Protect Borrowers. The report analyses the spending by US residents on car instalments, which is set to reach $1.68 trillion in 2025, a 37% increase from $1.23 trillion in 2018, as reported by the Carscoops website on Sunday local time. Based on the report from The Century Foundation and Protect Borrowers, the average price of a new car in the US is now above $49,000 (approximately Rp851.5 million). Meanwhile, about a decade ago, car prices there were in the range of $35,000 to $37,000 (Rp608.2 million to Rp642.9 million). Ivan Drury, Director of Insights at Edmunds, a US car buying and selling platform, stated that one factor contributing to high car instalments in the country is the lack of affordable cars. According to Edmunds data, around 20% of vehicle instalments are $1,000 (approximately Rp17.4 million) or more in the first quarter of 2026. In the same period in 2025, instalments of $1,000 accounted for 17%. Meanwhile, the average car instalment amount in 2025 was $680 (Rp11.8 million). Sean Tucker, Executive Editor at Kelley Blue Book, a vehicle pricing estimation agency, observes that vehicle manufacturers are currently targeting buyers with high incomes, who are unaffected by factors that could alter prices such as pandemics and wars. He also notes that currently 43% of new vehicles are purchased by people with incomes of $150,000 (Rp2.5 billion) or more. For borrowers with a credit score below 580, they may be charged interest of 18%. If they apply for a loan with a six-year term for a $30,000 car, they end up paying an additional $14,000 (Rp243.3 million) due to interest. According to the report from The Century Foundation and Protect Borrowers, most consumers currently opt for car loans with longer terms. As many as 22.9% of new cars purchased in the first quarter of 2026 are being instalmented for seven years or more. Drury warns that there are risks in taking longer instalment terms, one of which is paying far more than the price of the car itself.