Cars have become dramatically more expensive in the United States in recent years, with the average price hitting a record of $50,000 in 2025. But now the market faces both higher sticker prices and a surge in gas prices stemming from the war in Iran. In the past, U.S. consumers have relied on relatively affordable fuel to justify buying large cars such as SUVs and trucks. In fact, most U.S.-based automakers don’t even make sedans and compact cars anymore. California, however, has been pushing drivers to buy more electric cars. We talk about how the current rise in car prices and fuel costs along with government policies are affecting the U.S. auto market.

Guests:

Edward Loh, head of editorial, MotorTrend - an automotive media company

Scott Moura, professor in civil and environmental engineering and acting director of the Institute of Transportation Studies, UC Berkeley

Jessica Caldwell, head of insights, Edmunds - an automotive information and car buying website

Learn more about your ad choices. Visit megaphone.fm/adchoices