Only five major car brands in the United States had an average selling price of less than $40,000 in May 2026, as the average price of a new car remains near $50,000 and car buyers are feeling pinched.
According to Cox Automotive’s Kelley Blue Book, consumers paid an average of $49,220 for new cars in May 2026. According to the group, the average price of new cars in May was 0.5% below the May 2026 average of $49,456, and it was 1.2% above the May 2025 average of $48,627.
Cox also said automakers’ average manufacturer suggested retail price (also called sticker price) was $51,595, which the group said was 3.4% higher than average sticker prices in May 2025.
Erin Keating, an executive analyst at Cox Automotive, said in a statement that the combination of Americans’ demand for larger vehicles and supply shortages in some key segments such as pickup trucks has contributed to a steady rise in average new car prices.
“Average transaction prices across key vehicle segments are growing 2% to 4% year over year, driven by the convergence of product cycle and supply dynamics,” he said. “Redesigned SUVs from Toyota, Kia, Jeep and Hyundai are commanding higher prices out of the gate, while Ford’s F-Series production constraints are tightening truck inventory, pushing up average transaction prices. New Ram pickups are stepping up to capture buyers at the premium end.”
With that in mind, the USA TODAY Cars team took a look at five auto brands in May with an average selling price under $40,000 and their best-selling models.
1.Subaru
Average May transaction price: $36,862Percent change from April: -0.1%Best-selling US car: Subaru Crosstrek
2. Renault-Nissan-Mitsubishi alliance
Average May transaction price: $37,236Percent change from April: -0.3%Best-selling US car: Nissan Rogue
3. Mazda
Average May transaction price: $37,444 Percentage change from April: 2.0% Best-selling US car: Mazda CX-5
4. Honda
Average May transaction price: $38,816 Percentage change from April: -0.2% Best-selling US car: Honda CR-V
5. Hyundai
Average May transaction price: $39,228 Percentage change from April: 0.8% Best-selling US car: Hyundai Tucson
Reporting by Keith Lang, USA TODAY/USA TODAY Network via Reuters Connect