July new vehicle prices in the United States remained mostly unchanged from June, according to estimates from Kelley Blue Book. They noted only a slight decline month-over-month as incentive spending sped-up and fueled strong sales volumes.
However, they also said annual gains in new vehicle average transaction prices (ATPs) and manufacturer’s suggested retail prices are accelerating, though they remain below long-term averages. Both ATPs and MSRP are key measures of vehicle price increases in the U.S.
In July, KBB said the new vehicle ATP was $48,841. That’s a decrease of 0.1% from their revised lower June ATP of $48,900. ATPs last month were higher year-over-year by 1.5%, which they said was the largest annual gain of the year while still below long-term average gains.
Incentives were higher, too, increasing to 7.3% of ATP in July from an upwardly revised 7.0% of ATP in June, which KBB said was equal to $3,553. “The average incentive spend in July was the highest point of 2025 and higher than year-ago levels, when average incentive spending was 7.0% of ATP.”
New-vehicle MSRPs were lower in July by 0.3%, compared to June, but higher than year-ago levels, by 2.4%. KBB said this suggests that manufacturer costs are rising faster than consumer retail prices (ATPs). The year-over-year gain of 2.4% in July was the largest in 2025, they said, although still below the long-term average of 3.5%.
“In the face of rising prices, it is becoming more evident that the new-vehicle market is being supported by pent-up demand driven largely by high-net-worth households,” said KBB in its update. “These buyers are benefiting from the wealth effect of a healthy stock market and solid wage growth since the pandemic.”
At the same time, they said OEMs are providing healthy incentives to keep sales flowing. “Prices are trending higher, but just as we are seeing in the broader retail markets, there’s sufficient demand and generous incentives out there, and that’s driving the market.”
