The average new vehicle transaction price in the U.S. reached a record high in September.
The average new vehicle transaction price exceeded $50,000 for the first time after rising steadily for more than a year, according to recent estimates by Kelley Blue Book. That average transaction price was up 2.1% from August and 3.6% year over year, marking the largest annual gain since the spring of 2023, according to the data.
As 2026 model-year vehicles started showing up on dealer lots in September, the average new-vehicle manufacturer’s suggested retail price (MSRP), or "asking price," also reached a record high of $52,183, according to the data. That's a 4.2% increase year over year.
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More than 60 car models had an average selling price above $75,000, with nearly 94,000 of these high-end vehicles sold in September. That accounted for 7.4% of all new vehicles sold, which is up from 6% a year earlier. Among the six-figure vehicle category, the Cadillac Escalade, was the most in demand with total sales for both versions reaching 4,320 units in September.
While prices are reaching new highs, incentive spending, which refers to the amount of money automakers spend on things such as discounts and promotions, increased in September to 7.4% of the average transaction price or approximately $3,700.
Cox Automotive executive analyst Erin Keating said it's critical to remember the new vehicle market is inflationary.
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"Prices go up over time, and today's market is certainly reminding us of that," Keating said, noting that the $20,000 vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market."
Brian Moody, Autotrader's executive editor, said he knew this day was on the horizon after watching prices steadily creep up over the past few months.
"We’ve been heading for this intersection for quite some time – the price of electric cars, tariffs, government mandated equipment, increasing popularity of hybrids, the continuing popularity of trucks, and full-size electric trucks, are all contributing to the higher average transaction price." Moody said.
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However, Keating noted the auto market is currently being driven by wealthier households, which have more access to capital, good loan rates and are, in turn, propping up the higher end of the market for both gas and electic cars.
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Moody said the average cost was also driven up by everyone rushing to buy an electic vehicle before the tax-funded incentive ran out.
The average transaction price for new electic vehicles last month was $58,124, up 3.5% from the revised lower electic vehicle average transaction price in August, according to data from Kelley Blue Book.
