U.S. new-vehicle price growth slowed in April as the market faced softer demand and shifting sales patterns, according to recently released data from Kelley Blue Book.
The average transaction price for a new vehicle reached $49,461 in April, up 1.8 per cent from a year earlier and 0.7 per cent higher than March. Kelley Blue Book, a Cox Automotive brand, said the annual increase remained below the long-term average gain of roughly 3.6 per cent.
The slower growth came as several luxury segments posted weaker sales, while mainstream categories such as SUVs and pickup trucks continued to drive pricing higher.
Average manufacturer suggested retail prices also climbed in April, reaching a record $51,607 for 2026. That was up 2.1 per cent year over year and 0.6 per cent from March.
Among the industry’s top-selling segments, midsize SUVs remained the largest category for the third straight month. Average transaction prices for midsize SUVs rose 2.6 per cent to $50,380, while compact SUVs increased 2.9 per cent to $37,514. Full-size pickup trucks climbed 2.9 per cent to $66,705.
Incentive spending declined to 6.9 per cent of average transaction prices in April, down from 7.2 per cent in March, as inventory levels tightened.
“What we’re seeing in April is a mix-driven pricing story, not reaccelerating inflation,” said Erin Keating, Executive Analyst at Cox Automotive, in a statement “Strength in high-volume segments like SUVs and pickups is lifting the average, but overall price growth remains below long-term norms, signaling that the pricing environment is continuing to normalize.”
Electric vehicle pricing also shifted in April. EV average transaction prices rose 1.4 per cent month over month to $55,211 but remained 4.9 per cent lower than a year earlier. Tesla prices fell 4 per cent annually, while the Model Y dropped 8.3 per cent year over year.
