The average transaction price (ATP) for a new vehicle set a new record in September, surpassing $50,000 for the first time ever, according to Kelley Blue Book.

The details: September’s ATP rose 2.1% from August and was 3.6% higher year over year, marking one of several notable records set for the month.

  • The annual gain of 3.6% in September was the largest since spring 2023 but remained consistent with the long-term average of ATP inflation.

  • Incentive spending increased to 7.4% of ATP, or roughly $3,700—the highest level in 2025—up from 7.2% in August and 7.3% year over year.

  • The average new-vehicle MSRP also hit a record high of $52,183 in September, up 4.2% from a year earlier.

What they’re saying: “Prices go up over time, and today’s market is certainly reminding us of that,” said Erin Keating, Executive Analyst, Cox Automotive. “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.”

Why it matters: Record-high new-vehicle prices underscore ongoing affordability challenges, inflationary pressures, and shifting consumer behavior—pushing dealers to strike a careful balance between new and used vehicle inventory.

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Between the lines: Kelley Blue Book attributes the jump in ATP to a “rich mix” of luxury vehicles and higher-priced EVs, with electric vehicles accounting for 11.6% of the U.S. market in September, a record high.

  • The electric vehicle ATP last month was $58,124, up 3.5% from the revised lower EV ATP in August.

  • More than 60 models had ATPs above $75,000, totaling roughly 94,000 units sold—7.4% of total industry sales, up from 6.0% in September 2024.

  • The Cadillac Escalade continued to dominate ATPs among six-figure vehicles, with combined sales of 4,320 units across its two variants last month.

“We’ve been expecting to break through the $50,000 barrier,” said Keating. “It was only a matter of time, especially when you consider the best-selling vehicle in America is a pickup truck from Ford that routinely costs north of $65,000. That’s today’s market, and it is ripe for disruption.”

Bottom line: Record-high new-vehicle ATPs are a double-edged sword for dealers. On one hand, higher prices and strong luxury and EV demand are boosting gross profits and per-unit revenue. On the other hand, the pool of qualified, willing buyers is shrinking as affordability worsens—pushing more consumers toward used cars, leasing, or waiting out the market.

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