New-Vehicle Avg Price Hits Record High in Sep, Surges Past $50k for First Time

Summary

In September, the average transaction price (ATP) of a new vehicle in the U.S. was above $50,000 for the first time, according to new estimates released today by Kelley Blue Book. New-vehicle prices have risen steadily for more than a year, with the pace of the increases accelerating in recent months. Despite higher prices, retail sales continue to maintain a healthy pace. New-Vehicle Average Transaction Price The new-vehicle ATP was $50,080 in September, marking the first time it ever exceeded the $50,000 mark. The ATP last month was up 2.1% from August and was higher year over year by 3.6%. The annual gain of 3.6% in September was the largest gain since the spring of 2023, but aligned with the long-term average of ATP inflation. Incentive spending increased in September to 7.4% of ATP, or approximately $3,700. Incentive levels in September were at the highest point in 2025, up from 7.2% of ATP in August. A year ago, in September 2024, incentive levels were equal to 7.3% of ATP. As 2026 model year product arrives on dealer lots, the average new-vehicle manufacturer’s suggested retail price (MSRP) – commonly called “the asking price” – also reached a new record-high in September of $52,183. The MSRP last month was higher by 4.2% year over year, an increase above the long-term average. A rich mix of luxury vehicles and expensive EV models likely helped push the ATP into record territory last month. Kelley Blue Book is initially estimating the electric vehicle share of the U.S. market in September at 11.6%, a record high. The electric vehicle ATP last month was $58,124, up 3.5% from the revised lower EV ATP in August. Last month, there were more than 60 models with ATPs above $75,000 with total sales near 94,000 units – 7.4% of total industry sales, up from 6.0% in September 2024. In the rare air of six-figure vehicles, the Cadillac Escalade is still king. Two versions are available, with total sales in September reaching 4,320 units. Industry Average Transaction Pric...