LEXINGTON, Ky. (LEX NEWS) — Sticker shock is taking on a whole new meaning at auto dealerships across America. According to Kelley Blue Book, the online service that values cars, the average price of a new vehicle has topped $49.000.
That kind of money forces dealerships to get creative with their sales methods.
"The one thing that they do: offering the 0% interest. That is key," said Vickie Kain Fister, whose father founded Jack Kain Ford on Versailles Road in Lexington. "It's huge when people think of a payment, you know, with a 0% interest, it's incredible."
But sometimes, especially when the starting point might be $49,000 dollars, there needs to be additional incentives. A $49,000 loan, even at 0% interest, will still run you just under $700 per month in payments over 72 months.
Using employee pricing, which they often do at Jack Kain Ford, is usually a good start to offset some of the cost.
"Every invoice that comes in has that manufacturer's employee price," Fister said. "So, we'll show the customer the invoice. There are no additions, there's no subtractions. It is what it is."
Fister said the average age of a car on the road right now is around 13 years. Now, you will get much more in a vehicle when you buy something new. What you bought in 2013 is not at all what you'd be driving off a lot now.
"It's incredible. The amount of technology that's in these vehicles. It's just a computer on wheels is what it is," she added.
That technology has contributed to the rising costs. Tariffs played a role too, but Vickie said Ford has worked to keep those from being a factor.
"The manufacturers are working so closely with the dealers to offset any noise of tariffs. So, we don't have that issue here," she stressed.
Vickie said new car sales are up 8% year over year at her dealership. Their certified used car sales have done well too, jumping 25% in the last year. The warranty that's attached to a certified vehicle makes it more attractive to the buyer.
She also said any end of year sales promotion doesn't usually save a buyer much. In fact, the Kain dealership isn't certain they'll have enough inventory to do a big end-of-the-year sale if they continue selling cars at their current pace. That, they believe, could be an issue at many dealerships during the final 1/3 of 2026. So, if you need a new car now, and see one you like, don't wait.
"What you want might not be here, later" Fister said.
