The State of the Gas-Powered Car Market: A 2023-2025 Price & Performance Report

In a world increasingly focused on electric vehicles (EVs), its easy to lose sight of the massive market for traditional, internal combustion engine (ICE) cars. For many drivers, a gasoline-powered vehicle remains the most practical and affordable choice. But with inflation, supply chain shifts, and changing regulations, what does that market look like today?

Weve analyzed the data from the past three years to bring you a comprehensive report on new non-EV car prices, fuel efficiency trends, and what you can expect from manufacturers around the globe.

The Price Rollercoaster: A Slow Climb to Stabilization (2023-2025)

After the supply chain chaos that sent prices soaring in 2021 and 2022, the new car market has been slowly finding its footing. While overall average transaction prices (ATPs) remain high, the rapid month-over-month increases have largely subsided.

It's important to note that most reported "average new car prices" include more expensive EVs, which pull the average up. Data suggests that EVs can cost, on average, around 10% more than their gas-powered counterparts.

Here is the estimated average transaction price trend for new, non-EV cars over the last three years:

• 2023: The year ended with an overall new-vehicle ATP of approximately $48,974. This marked a period of returning supply and the re-introduction of dealer incentives.
• 2024: Prices remained relatively stable throughout the year. By December 2024, the overall industry average was around $49,740.
• 2025 (as of November): The market has seen a slight uptick, with the overall average transaction price crossing the $50,000 mark for the first time in September before settling back to around $50,080. Given the EV premium, the average for a non-EV vehicle is estimated to be just under this, likely in the $48,500 - $49,500 range depending on the month's specific sales mix.

While sticker prices have risen, increased inventory has led to better availability and more room for negotiation than during the peak of the pandemic shortages.

Fuel Economy: The Gas Engine's Steady, Quiet Progress

While EVs are the primary driver behind the dramatic improvements in fleet-wide fuel economy averages, traditional gasoline engines are also becoming more efficient. Stricter government regulations continue to push manufacturers to squeeze more miles out of every gallon.

According to the EPA's Automotive Trends Report, the difference is clear:

• In the 2023 model year, the real-world fuel economy for all new vehicles hit a record high of 27.1 mpg.
• However, if you remove EVs from that calculation, the average for gasoline-powered vehicles drops to 24.9 mpg.

While data for the full 2024 and 2025 model years is still being finalized, the trend of incremental improvement for ICE vehicles is expected to continue. Manufacturers are using advanced technologies like turbocharging, lighter materials, and more efficient transmissions to meet standards, even as consumers continue to favor larger SUVs and trucks.

A Global Market: Price & Value by Origin

Where a car is made often correlates with its market positioning, price point, and fuel economy. Heres a general breakdown of what you see from major manufacturing regions:

• Asian Manufacturers (Japan, South Korea): Brands like Toyota, Honda, Nissan, Hyundai, and Kia are the undisputed leaders in the affordable and fuel-efficient segment. They dominate sales with popular compact cars and SUVs like the Toyota RAV4 and Honda CR-V, which have prices well below the industry average. These manufacturers have also been at the forefront of improving fuel economy for their gas-powered fleets.
• American Manufacturers (USA): Domestic brands like Ford, Chevrolet, and Ram have a stronghold on the truck and large SUV market. These larger, more powerful vehicles naturally come with higher price tagsfull-size pickup trucks averaged over $64,000 in late 2024and lower fuel economy compared to smaller cars.
• European Manufacturers (Germany, etc.): Brands such as BMW, Mercedes-Benz, and Audi are primarily positioned in the luxury market. While they offer high-performance and technologically advanced gasoline engines, their average transaction prices are significantly higher than mainstream brands, often pushing the overall market average upward.

Visualizing the Data: A 3-Year Snapshot

The infographic above provides a clear visual summary of these key trends in the non-EV car market.

Conclusion: Is Now the Right Time to Buy?

The data shows a market that has stabilized after a period of intense volatility. While prices are high by historical standards, the return of inventory and incentives provides more opportunities for buyers than in recent years. If you're looking for a fuel-efficient gasoline car, Asian manufacturers offer excellent value. If you need the utility of a truck or large SUV, be prepared for a higher purchase price from American brands.

Navigating this complex market and finding the best financing deal can be a challenge. Thats where we come in. At myautoloan.com, we help you compare offers from multiple lenders to ensure you get the best rate possible for your new car purchase.

Ready to take the next step? Apply for a loan at myautoloan today and drive away with confidence.