Top Car Brands with the Biggest Price Hikes Over 5 Years

The past ten years have been a fast-paced period for the automotive industry characterized by supply chain disruptions caused by the pandemic, increased spending on electric vehicles, and ongoing high inflation rates. In the face of these uncertainties, vehicle costs have risen sharply. Between the second quarter of 2020 and the same period in 2025, the typical purchase price for a new automobile went up by 30%, hitting $48,749. Nevertheless, certain manufacturers have set their prices well above this mean, indicating wider financial patterns and buyer choices.

Headlining the increase in prices is the Volkswagen Group , including brands such as Volkswagen, Audi, Porsche, Bentley, and Lamborghini in the United States. The typical purchase cost rose by 38% between Q2 2020 and Q2 2025, exceeding the overall inflation rate of 25% over the same timeframe. Following closely are the Hyundai Group (which includes Kia) and Honda, with price hikes of 34% and 33%, correspondingly, fueled by fresh electric vehicle offerings and growing interest in bigger SUVs.

Luxury Segment Price Trends

Strangely enough, even though high-end vehicles are becoming increasingly popular, their price increases have not been as significant compared to mass-market brands, rising by 25% between 2020 and 2025. Nevertheless, certain manufacturers within this category have experienced much steeper growth. Particularly, Chevrolet, Lexus, Range Rover, Honda, and BMW has seen an increase of at least 30% in average selling prices during the last five years, indicating changes in customer tastes and economic conditions.

Companies Facing Slight Rise in Prices

In line with the broader pattern of increasing costs, certain manufacturers have succeeded in limiting their price hikes beneath the overall inflation level. Ford, Stellantis, Nissan, and Subaru stand out as key instances. Specifically, Subaru implemented an alternative approach, witnessing a mere 15% rise in transaction prices across five years, much lower than the average inflation rate. Nissan experienced a modest 14% increase in pricing, possibly because of declining presence in the American market, resulting in reduced dealership promotions and changes to manufacturer-suggested retail prices.

Given the increasing costs, CarEdge reminds buyers that they aren’t obligated to agree to any dealership proposal. Bargaining continues to be essential. CarEdge provides various strategies for intelligent vehicle purchases in 2025, like utilizing up-to-the-minute market information to grasp true pricing, focusing on vehicles that aren't selling quickly for improved bargains, and looking into dealer-supported promotions. Moreover, discussing elements beyond the purchase price—such as loan conditions and the value of traded-in vehicles—can lead to substantial financial benefits.

Effective timing can significantly impact obtaining an advantageous offer. CarEdge recommends considering purchases towards the close of a month, quarter, or during special sales periods to benefit from dealership promotions. Additionally, using technological resources, including AI applications like CarEdge’s AI Negotiator, can help in achieving more favorable pricing and conditions, giving buyers an upper hand when acquiring a vehicle.