The average transaction price (ATP) of a new vehicle in the U.S. was over $50,000 for the first time in September, according to Kelley Blue Book.
It reached $50,080, the company said, adding that new vehicle prices have been rising steadily for more than a year. They also noted that the pace of the increases has accelerated in recent months, but that despite higher prices, retail sales maintain a healthy pace.
“It is important to remember that the new vehicle market is inflationary. Prices go up over time, and today’s market is certainly reminding us of that. While there are many affordable options out there, many price-conscious buyers are choosing to stay on the sidelines or cruising in the used-vehicle market,” said Erin Keating, Executive Analyst at Cox Automotive, in a statement.
Keating added that the auto market is now being driven by wealthier households who have access to capital, good loan rates, and are propping up the higher end of the market. “Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of electric vehicles and higher-end vehicles pushing the new-vehicle ATP into uncharted territory.”
The ATP in September was up 2.1 per cent from August and higher year over year by 3.6 per cent. September also experienced the largest gain in ATP — an annual gain of 3.6 per cent — since the spring of 2023. However, it was aligned with the long-term average of ATP inflation.
As for EVs, there were a record 437,487 units sold in the third quarter of 2025, with a share at 10.5 per cent of the market. Buyers rushed to finalize deals with the looming expiration of government-supported EV sales incentives. This pushed total volume higher YoY by nearly 30 per cent.
