Podcast Summary: Your Money Minute

Episode: New Car Prices Soar 12/11/25
Date: December 11, 2025
Host: Jessica Ettinger (CNBC)
Guest: Phil LeBeau (CNBC Auto Industry Reporter)
Duration: 60 seconds

Overview

In this quick episode of Your Money Minute, host Jessica Ettinger, joined by CNBC’s Phil LeBeau, addresses the ongoing surge in new car prices in the U.S. and what it means for buyers. The episode offers practical advice for consumers grappling with higher auto loan payments and discusses whether waiting for lower prices is a viable strategy.

Key Discussion Points & Insights

1. Rising Costs of New Cars

• Prices and Payments:
  • The average monthly payment for a new car has exceeded $750.
    • “People are not happy that auto monthly loan payments are more than $750 for a new vehicle.” — Phil LeBeau [00:09]
  • Jessica reiterates the sticker shock:
    • “750 bucks a month.” — Jessica Ettinger [00:15]

2. Contributors to Increased Prices

• Phil LeBeau explains:
  • “Costs have gone up, whether it's raw materials, tariffs in certain cases, new labor contracts.” — Phil LeBeau [00:19]
  • These increases are systemic and tied to broader industry issues—a convergence of supply chain, international trade, and labor factors.

3. Outlook: Will Prices Drop?

• No Relief in Sight:
  • LeBeau is blunt about prospects for falling prices:
    • “These prices show no indication that they are going to stop and reverse. There's no indication that they're going to be coming back down.” — Phil LeBeau [00:32]
  • Jessica summarizes: If you’re waiting for the old days on price, it isn’t likely to happen soon.

4. Financial Advice for Would-Be Buyers

• Expert Recommendation:
  • “If you can wait to buy a new car, sock money away every month during that time, the best deal on a new or a used car is just to pay cash. Skip the cost of monthly interest on a loan or a lease.” — Jessica Ettinger [00:41]
  • Saving gradually can help you avoid burdensome interest costs and take advantage of better opportunities later.

Notable Quotes & Timestamps

• Phil LeBeau on high car payments:
  “People are not happy that auto monthly loan payments are more than $750 for a new vehicle.” [00:09]

• On the drivers of price increases:
  “Costs have gone up, whether it's raw materials, tariffs in certain cases, new labor contracts.” — Phil LeBeau [00:19]

• On the likelihood of price relief:
  “These prices show no indication that they are going to stop and reverse. There's no indication that they're going to be coming back down.” — Phil LeBeau [00:32]

• Expert advice:
  “If you can wait to buy a new car, sock money away every month during that time, the best deal on a new or a used car is just to pay cash. Skip the cost of monthly interest on a loan or a lease.” — Jessica Ettinger [00:41]

Key Takeaways

• New car monthly payments average $750+; this trend is unlikely to reverse soon.
• The price surge is driven by increased costs in materials, tariffs, and labor.
• Waiting to buy a car? Save regularly and, if possible, pay cash to avoid interest.
• Don’t expect a drop in prices in the near future—adjust expectations and plan finances accordingly.