Average new car price will reach $50,000 this year, says Kelley Blue Book's Sean Tucker

Summary

Sean Tucker of Kelley Blue Book discusses new-car affordability, predicting the average new-car price will cross $50,000 early this year and remain elevated. He explains that automakers have shifted model lineups toward higher-priced and luxury vehicles, while longer 100-month loans lower monthly payments but add significant interest cost. He also notes limited impact from the car-loan interest deduction and flags auto delinquencies as a risk, though the transcript cuts off before he finishes that point.

• Average new-car price expected to cross $50,000 and stay there.
• Monthly payments are near record highs and may set a record next year.
• Automakers have shifted to higher-priced and luxury models as over-$75,000 vehicles outsell under-$25,000 vehicles.
• 100-month loans lower monthly payments but cost about $5,100 more than 60-month loans.
• The car-loan interest deduction is seen as narrow and limited in impact.
• Auto delinquencies are mentioned as a continuing risk, but the discussion is cut off.
• Slate Automotive's under-$20,000 truck attempt is viewed as uncertain.