With automakers launching fall sales events and dealers clearing out 2026 inventory, AAA reminds consumers that today’s high vehicle prices and borrowing costs can make keeping a well-maintained vehicle the smarter financial choice.
The average new vehicle now costs more than $50,000 and financed buyers pay an average of $777 per month, prompting many consumers to reconsider whether replacing a vehicle makes financial sense.
Despite higher prices, vehicle sales remain strong. Cox Automotive reports 16.3 million new-vehicle sales in 2025 and forecasts 16.1 million in 2026. It also projects 38.3 million used-vehicle sales, including 20.3 million retail sales, this year.
Meanwhile, Americans are holding onto their vehicles longer than ever. Data from S&P Global Mobility shows the average vehicle on U.S. roads is now 12.8 years old, the oldest on record, driven largely by high replacement costs and improved vehicle durability.
“Many consumers assume replacing an older vehicle is the cheaper option, but that’s not always true in today’s market,” says Lori Weaver Hawkins, public and government affairs manager, AAA Club Alliance. “Before taking on a seven-year loan and a monthly payment approaching $800, drivers should compare those costs against maintaining a reliable vehicle they already own.”
What vehicle buyers should know right now
• New-vehicle prices remain elevated. Kelley Blue Book reports that the average new-vehicle transaction price reached $50,089 in August 2026, up 1.9% from a year earlier and above $50,000 for the first time this year.
• Used-vehicle prices also remain high. Cox Automotive reported an average used-vehicle listing price of $27,239 in August 2026, underscoring continued affordability pressure in the lower-cost segment of the market.
• Used-vehicle demand is being fueled by affordability. With fewer lease returns in recent years and higher new-vehicle prices, many buyers are competing for a limited supply of reliable used vehicles, keeping prices firm. With gas prices near record highs, fuel-efficient late-model used vehicles are in especially high demand and can sell for more than their Kelley Blue Book value.
• Vehicle age matters, but maintenance matters more. Older vehicles can be safe and dependable, but only if routine maintenance is not deferred. AAA ‘s Car Care team reports that many roadside service calls involve issues such as dead batteries or worn tires, that could be prevented with regular upkeep.
Rolling debt and sticker shock
New data underscores just how challenging today’s vehicle market has become for buyers. According to Edmunds, the average monthly payment on a financed new vehicle reached a record $787 in the third quarter of 2026. More than one in five buyers—21.2%—committed to payments of $1,000 or more, while the average amount financed climbed to a record $44,664.
Negative equity also remains a concern: Edmunds reported that second quarter 2026 data showed nearly 3 in 10 trade-ins toward new vehicles are in an underwater position, the highest Q2 figure since 2020. The average negative equity amount in Q2 2026 was $6,884, the highest on record for a second quarter. Edmonds had reported the average negative equity was at $7,183 during the first quarter and $6,754 in Q2 2025.
To offset rising prices, consumers are increasingly stretching loan terms. Edmunds found that more than one in four new-car buyers are now financing their vehicles for 84 months or longer. Loans with terms of 84 months or more accounted for a record 25.5% of financed new-vehicle purchases in Q3 2026, up from 23.9% in Q2 2026 and 21.8% in Q3 2025. Longer terms can reduce the monthly bill but increase total interest costs. The average total interest paid over the life of a financed new-vehicle purchase climbed to a record $9,938 in Q3 2026, up from $9,811 in Q2 2026 and $9,442 a year ago.
Many buyers focus on the monthly bill, but the true cost also includes the loan term, down payment, taxes, dealer fees, add-ons, and interest. Rather than limiting comparison to only the monthly payment, Weaver Hawkins suggests asking for an itemized out-the-door price and compare APR offers, including pre-approved financing, before signing.
“Whether buying new or used, AAA encourages consumers to do their homework before signing on the dotted line,” Weaver Hawkins adds. “It’s not just the sticker price along with taxes and fees; it’s the monthly payment and the long-term impact that can have on a buyer and their budget.”
For those who do plan to purchase, fall can provide opportunities for new-car buyers, as dealers make room for incoming models and manufacturers introduce seasonal incentives to help clear lots for new inventory.
Fall vehicle buying tips
• Do the math before buying a new vehicle. Compare monthly payments, insurance, taxes, and depreciation against the cost of maintaining your current vehicle.
• Be cautious of extended loan terms that lower monthly payments but increase total interest costs.
• Waiting until December may produce a better price, but with the trade-off of less selection. Kelley Blue Book identifies the end of the calendar year—particularly the final week of December—as traditionally one of the strongest negotiating periods.
If buying used, consider certified pre-owned vehicles or get the vehicle inspected. A professional inspection and a vehicle history report can help avoid costly surprises. Whether new or used, follow a regular maintenance schedule after buying. Drivers who stay current on recommended service are more likely to avoid major repairs and roadside breakdowns.
Why more drivers keep their vehicles longer
AAA’s latest Your Driving Costs study highlights why many drivers are hesitating to buy new. In 2026, the average cost to own and operate a new vehicle is $12,863 a year, or about $1,072 a month, based on driving 15,000 miles annually. That figure includes depreciation, financing, fuel, insurance, taxes, and maintenance—not just the purchase price. AAA notes that a methodology update means the 2026 estimate is not directly comparable with the 2025 figure.
Depreciation remains the biggest expense, with new vehicles losing a weighted average of $4,422 in value each year.
Costs also vary widely by vehicle type: at 15,000 miles annually, small sedans average about 62 cents per mile, while half-ton pickup trucks average about $1.10 per mile.
Maintenance, repair, and tire costs average about 11.7 cents per mile, reinforcing the value of regular upkeep, especially once a vehicle is paid off.
Five key maintenance items drivers should focus on to help keep their vehicles on the road longer:
• Battery health: Have the battery tested regularly, especially before extreme summer or winter temperatures, since weak batteries are a leading cause of breakdowns.
• Tire care: Check tire pressure monthly, inspect tread wear, and rotate tires on schedule to improve safety, fuel economy, and tire life.
• Oil changes: Follow the vehicle manufacturer’s recommended oil change intervals to protect the engine and avoid premature wear.
• Brake inspections: Don’t ignore squeaking, grinding, or longer stopping distances—routine brake checks help catch issues before they become safety hazards.
• Fluids and filters: Make sure essential fluids like coolant, brake fluid, and windshield washer fluid are topped off, and replace air filters as recommended to keep the vehicle running efficiently.
“Skipping routine maintenance to save money often backfires,” Weaver Hawkins said. “Simple steps like oil changes, tire checks, brake inspections, and battery testing can prevent breakdowns, improve safety, and help a vehicle last years longer.”
AAA Blue Grass