New-vehicle prices climbed again in January, with compact SUVs and full-size pickups continuing to carry a big share of sales, according to Cox Automotive.
The details: The average transaction price (ATP) for new vehicles hit a January record, with MSRPs also edging higher as automakers trimmed incentives.
Last month, the ATP for a new vehicle was $49,191, a 1.9% increase year-over-year.
The average MSRP (commonly called “the asking price”) was $51,288 in January, 2.1% higher than January 2025.
The average incentive package was equal to 6.5% of ATP (roughly $3,200), down from 7.1% a year ago.
What they’re saying: “January’s pricing story is really a reminder of how much mix still matters in this market,” said Erin Keating, executive analyst at Cox Automotive. “We hit a new January high even as prices naturally pulled back from December’s luxury-heavy finish.”
Why it matters: The convergence of higher transaction prices, elevated sticker prices, and reduced manufacturer discounts is pushing many budget-conscious car buyers into the used car market.
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Between the lines: Segment performance shows where consumers are still finding value and where they’re willing to spend up.
ATPs for compact SUVs were $36,414 in January, down 0.4% year over year, showing there are still plenty of strong options 25%+ below the industry average.
The average MSRP for full-size pickups topped $70,000 for the fifth consecutive month, and more than 150,000 of those trucks were sold in January.
Fewer than 4,000 subcompact cars were sold, despite average MSRPs under $26,000, underscoring their weak appeal with buyers.
“Consumers are still finding plenty of options below the industry average, especially in core segments like best-selling compact SUVs, but the disappearance of true entry-level vehicles continues to lift the floor higher,” said Keating. “At the same time, strong sales of full-size pickups and large, luxury SUVs keep pulling the averages up, proving that demand for high-priced models remains incredibly resilient.”
The silver lining: Across the top 10 best-selling vehicles of 2025 sold by franchised dealers (no Tesla, no trucks), the ATP is only $35,642, down 0.4% year-over-year, according to CDK Global.
Bottom line: Rising average prices mask a divided market where affordability depends less on what's available and more on what consumers actually choose to buy. While manufacturers still offer vehicles well below the industry average, shoppers are gravitating toward larger and more expensive models, which is pushing the statistical floor higher.“
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