New-vehicle price growth accelerated in February as market sales recovered from a slow January, according to Kelley Blue Book (KBB).
The details: Based on the Cox Automotive brand’s report, new-vehicle pricing was notably higher year over year across all key metrics, while rising modestly month over month.
The average transaction price (ATP) in February was $49,353, up 3.4% from a year earlier, putting last month’s increase well above the average annual ATP gain of 0.9%.
Compared with January, prices in February were up 0.3%, a gain slightly above recent averages, per KBB.
The average new-vehicle MSRP, meanwhile, was $51,440 in February, up 3.5% year over year, and slightly above the long-term average annual gain.
The average incentive package last month was 6.9% of ATP, up from 6.5% in January but nearly on par with the 7.0% reported last year.
Between the lines: ATP increases in February were mostly near or below the industry average among the best-selling segments, while the average new EV ATP declined amid softer demand.
ATPs for the top-selling midsize SUV segment rose 3.5% year over year to $50,148.
For the compact segment, the No. 2 category by sales, ATP was up 1.6% year over year to $36,807.
The average ATP for full-size pickup trucks was $66,157 in February, up 2.9%.
Among EVs, ATP was $55,300 last month, down 1.4% year over year and 0.6% below January.
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Why it matters: The data suggests pricing remains firm even as incentives tick higher, giving stores a market that still supports healthy gross potential without signaling a major affordability reset.
It also reinforces that February’s pricing strength was broad enough to matter, but not extreme enough to suggest a return to the volatility seen during the supply-crunch era.
What they’re saying: “A 3.4% ATP increase in February stands out, but it’s not out of character when you put it in context,” said Erin Keating, Executive Analyst, Cox Automotive, per the press statement.
“Outside of the ‘everything was broken’ phase, when prices were rising at a 13% clip, the industry’s long-run average is closer to 3%. What we’re seeing now looks more like normalization than a new pricing problem.”
Bottom line: February pricing shows the new-vehicle market is holding together despite affordability pressure and declining EV demand, while incentives and segment-level shifts continue to shape sales opportunities.
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