New car prices average close to $50,000, and recent data shows that about 10% of car buyers who take out loans for their vehicles are paying more than $1,000 monthly for their vehicles.
According to Cox Automotive’s Kelley Blue Book, consumers paid an average of $49,758 for new cars in June. June’s average price for new cars was 0.4% above the May average of $49,220, and 0.6% above the May 2025 average of $48,907, according to the group.
Meanwhile, new data from Lending Tree shows that 9.6% of Americans with active auto loans had at least one monthly payment of $1,000 or more. This is also more than 8.6% last year. Lending Tree said a $1,000 car payment is equivalent to 14% of the median household monthly income of $7,147.
“A $1,000 car down payment is admittedly too high, but many Americans are clearly willing to take it,” Matt Schultz, chief consumer finance analyst at LendingTree, said in a statement.
Schultz added, “In most of this country, you can’t go without a vehicle.” “It’s not just about what people need. It’s also about what they want, and Americans love their vehicles. This passion for cars, trucks and SUVs drives a lot of spending, too.”
With that in mind, the USA TODAY Cars team compiled some tips that experts say can help you negotiate like a pro the next time you buy a car.
Treat the transaction as you would any major purchase
Brian Moody, former executive editor of car shopping site AutoTrader, said think about buying a car the same way you would any serious financial purchase. This means researching it first, making an appointment, and never buying on the same day you make the purchase.
“Before visiting a dealership in person, you should know a lot about the two or three cars you’re serious about,” Moody said. “It’s from online research, talking to neighbors and reading reviews.”
Also, keep the right mindset, says Evan Drury, director of insights at Edmunds.com.
“You need to interact with what makes you most comfortable. Eat your favorite breakfast, go to the gym beforehand, go hiking, watch your favorite Wall Street movie,” Drury said. “Whatever puts you in the right place mentally to deal with a situation where you have to make a difficult decision, that’s where you want to keep your mind.”
Equip yourself with knowledge and stay organized
Drury said it’s important to get as many comparable prices as possible for the vehicle you want and make sure they are current.
Automakers change their incentives on vehicles every month, Drury said, and they are not specific to a calendar day. They’re on the sales day calendar, which has start and end dates you may not be familiar with, so open the details of any promotion to find out the actual end date.
“Stay organized,” Drury said. “It’s easier to negotiate when you have all your paperwork organized, websites with calculators saved in one place, etc. Fumbling around looking for important things or trying to remember specific numbers in a high-pressure situation is not confidence-inspiring.”
He suggested printing some things out because it’s easier to flip through specific things on paper than to show someone something on a 6.5-inch screen.
Moody’s agreed, saying research on stimulus is important given all tariffs or other global events that could impact pricing.
“You can’t say, ‘All Buicks are expensive and Nissans are not.’ It’s model by model. For example, Ford has extended pricing for its employees until the beginning of July, but if you look at the small print there are a number of models that don’t apply. Nissan has actually reduced the prices of two of its cars, which is the opposite of what is happening with tariffs at the moment. But Nissan makes a lot of its cars in America.”
FAQs about financing
If you can pay cash for a vehicle, it would be wisest, Moody said. Unless they’re offering 0% financing, go for it. That said, there are also some 1.9% and 3.9% financing deals out there that are good, and always go for the shorter term loan because you get equity in the car quicker.
You should note that the interest rate on a loan to buy a used car will generally be higher than the interest rate on buying a new car. For this reason, experts said, if you’re looking for a low-use, newer model pre-owned car, it’s also smart to look at a new car. If you get a low interest rate on new car financing, buying a new car may be more beneficial.
Be armed with your credit score, Moody said. In fact, it’s best to get pre-approval from your bank or credit union before negotiating a car. While most dealerships have deep partnerships with multiple banks and will likely get you a better interest rate than your bank or credit union, chances are they won’t. This is why it is important to have a backup loan available.
Once the dealership gives you a price quote, ask for a printout of the exact numbers, fees and taxes so you can take it home and study it.
“Ask them: Is this the lowest interest rate I qualify for?” Moody said. “Is the dealership adding any additional points to the credit? Is there a lower trim level that fits more into my price level?”
Trade-ins as a tool
Drury said your strongest negotiation tool can also take the most variability: the vehicle in your driveway you plan to trade in.
“It’s important to get it appraised by multiple buyers before you go to the dealership,” Drury said. “You’ll want paperwork or emails that show what other people are willing to pay. If you’re lucky enough to live in a state with a sales tax deduction through trade-in, get ready to do some math to see how low an offer you can take but still break even with the tax savings.”
If a dealership can get close enough to the trade-in value, it sometimes makes sense to do the transaction under one roof, Drury said. But making the most of your trade-in can lower your down payment on a new vehicle.
no trade? No problem, Moody said.
“If it’s a negotiating dealership you can always say, ‘I’ll put this much down and pay this much a month.’ It’s always better to buy rather than pay monthly, Moody said. “I can sell you a Maserati for $300 a month, but it could be a terrible deal if you don’t know the rest of the terms. This could be for Rs 1,000 a month. You want the lowest down payment, lowest monthly payment and as few months as possible.”
Jamie L. Lareau is the senior auto writer covering Ford Motor Company for the Detroit Free Press. Contact Jamie at (email protected). Keith Lang is an automotive reporter on the National Trending desk at USA TODAY. Contact Keith at (email protected).
Jamie L. Reporting by Lareau and Keith Laing, Detroit Free Press/USA TODAY
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