The average transaction price (ATP) for new vehicles held steady in November as affluent households continue to drive the market, potentially steering the ATP well beyond $50,000 in the months to come.
The details: According to estimates released by Kelley Blue Book Tuesday, new-vehicle prices have been steadily rising—though at a slower pace for more than a year now—with the average incentive package dipping year over year but increasing month over month, reports Cox Automotive.
The new-vehicle ATP in November was $49,814, up 1.3% year over year and mostly unchanged from October ($49,760).
The average new-vehicle MSRP, or “asking price,” was higher by 1.7% year over year in November and 0.3% month over month at $51,986.
The average incentive package last month was equal to 6.7% of ATP ($3,347), down notably from one year ago at 7.9% of ATP—but higher than October’s 6.5% of ATP.
Why it matters: A mix of stable prices and slowly rising discounts signals a market that’s cooling but not cracking, where managing incentives and inventory smartly can protect margins as affordability pressures build for everyone else.
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Between the lines: Kelley Blue Book’s ATP report highlights some other key trends driving the market, including an increase in the average MSRP for a full-size pickup and declining sales for vehicles with an MSRP below $30,000.
The average MSRP for a full-size pickup was $70,178, 1.8% higher than in November 2024, while mostly unchanged from October.
New vehicles sold in November with an MSRP below $30,000 accounted for 7.5% of total sales last month, down from 10.3% in November last year.
What they’re saying: “Many new-car buyers today are in their peak earning years and are less price-sensitive, opting for vehicles at the higher end of the market to get the features and experiences they value most,” said Cox Automotive Executive Analyst Erin Keating. “In November, sales of vehicles priced above $75,000 outpaced those below $30,000, underscoring this preference for premium products.”
Also worth noting: November estimates for electric vehicles continue to reveal the volatility of the segment following the elimination of the federal EV tax incentive—with the ATP in November at $58,638, up 3.7% year over year, and sales at just over 70,000 units, which is down by more than 40% year over year.
Bottom line: Dealers still have strong pricing power with affluent buyers—keeping ATP near $50,000 and MSRPs rising—while only slowly increasing incentives, which helps protect front-end gross now but signals they must stay disciplined on discounting as the market pushes past the $50,000 mark.
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