Trump Speaks on U.S. Car Affordability in Detroit

Key Points

• During a speech to the Detroit Economic Club Tuesday, President Donald Trump talked about how the auto industry is performing.
• A statement released from the White House during these remarks touted how new cars are getting more affordable for Americans, but the reality is more complicated.

President Donald Trump delivered remarks from the Detroit Economic Club Tuesday touting his administration’s achievements in his first year back in office. Among these remarks was a brief mention of how well the U.S. auto industry is doing, with the president mentioning how Ford and GM are reinvesting in manufacturing in the country. Accompanying the speech, the White House released an article outlining more talking points about the auto industry.

Related: Which Tariffs Could Affect Your Next Car?

One point that stood out was a statement regarding how new cars are getting more affordable for Americans:

“New data indicates that prices for both new and used vehicles have decreased since President Trump took office — a trend complemented by recent declines in vehicle maintenance, repair and insurance costs, as well as gas at its lowest average price in nearly five years.

Additionally, for the first time, Americans can deduct interest on auto loans for vehicles made in America — positioning the market for even greater demand.”

However, the reality of the affordability of new cars isn’t so straightforward.

New-Car Prices Are Up

• Takeaway: The average price for a new vehicle in the U.S. has hovered around $50,000 for over a year now.

New cars aren’t getting cheaper. According to Cars.com data, as of November 2025, the average price for a new car was $49,711, up 0.7% from 2024; that’s also up 31% from the same time in 2019, when the average new-car price was $37,824.

Pricing is up for many segments of the auto market, too. Among mass-market brands that include Ford, Toyota and Honda, new-car pricing is up 0.3% from 2024 to $45,457. Luxury cars and used cars have seen the biggest price increases: The average price of new luxury cars is up 2.4% to $72,334, while used-car pricing is even higher, up 2.7% to an average price of $29,541. For a different cut of the market, the average new price of an electric vehicle is also on the rise, up 2.1% year over year from 2024 to 2025 to an average of $64,298. Used EVs are an exception, however; their average price dropped 3.0% from 2024 to 2025.

Because prices generally are on the rise, buyers are getting comfortable with longer loan terms, and with increasing interest rates and monthly payments.

What’s a Buyer to Do?

What do you do if you’re in the market for a new car but face such financial challenges? The key is to shop smart. If you’re looking for something more affordable, there are still brands that offer vehicles with starting prices under $30,000 — though the number of cars under $30,000 may be decreasing due to tariffs. You can also shop by your budget. Use tools such as our Car Affordability Calculator to see how much car you can comfortably afford.

In addition, check out Cars.com’s coverage on affordable vehicles to help you throughout your car-shopping journey:

• Best New Cars for $30,000 or Less
• 2025 Cars.com Affordability Report: Best Value New Cars
• Here Are the 10 Cheapest New Cars You Can Buy Right Now
• Here Are the 10 Cheapest New SUVs You Can Buy Right Now
• Here Are the 10 Cheapest Pickup Trucks You Can Buy Right Now
• Here Are the 11 Cheapest Electric Vehicles You Can Buy
• What Are the Best Used Cars for $10,000?
• What Are the Best Used Cars for $15,000?
• What Are the Best Used Cars for $20,000?

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