New Vehicle Prices Near All-Time High, Mix Influences Overall Gains
Average transaction prices for new vehicles in the U.S. rose for the fourth consecutive month in September, nearing the record high set in late 2025.
The average transaction price (ATP) for a new vehicle in the U.S. increased by 0.9% in September to $50,562, according to Kelley Blue Book. This figure is just $52 shy of the all-time record of $50,614 established in December 2025. The relatively modest year-over-year increase of 0.7% is attributed, in part, to a stronger sales mix favoring more affordable vehicle segments.
While a typical seasonal price increase occurs in the latter half of the year, the current gains are more muted than historically observed. Analysts suggest that a shift in consumer preference towards lower-priced vehicles, such as compact SUVs and cars, is tempering the overall average price increase, even as individual model prices may be rising.
Electric vehicle (EV) ATPs saw a year-over-year decrease of 3% in September, averaging $55,879. This decline is partly due to a higher proportion of more affordable EV models in the sales mix. Tesla's average transaction prices rose 3.3% month-over-month but remained largely flat compared to the previous year.
Average manufacturer's suggested retail price (MSRP) for new vehicles reached $52,342 in September. Incentive spending as a percentage of ATP saw a slight monthly increase to 6.6% but remained below the levels seen in September of the previous year.