Topline
The average price for a new vehicle in the U.S. is now above $50,000 for the first time ever, according to Kelley Blue Book, which noted the all-time high pricing has not stopped electric vehicle sales from soaring.
The Ford F-Series is one of the vehicle lineups most affected by tariffs. (Photo by Joe Raedle/Getty Images)
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Key Facts
Average transaction prices for new vehicles hit $50,080 in September, the report released Monday found, rising 2.1% from August and 3.6% year-over-year.
New vehicles’ average price sat around the $40,000 mark five years ago, not long before prices began skyrocketing amid a semiconductor chip shortage.
Average new-vehicle manufacturer’s suggested retail prices (MSRPs) also hit an all-time high last month, reaching $52,183, up 4.2% from the same period last year.
Average transaction prices were “likely” pushed up by a “rich mix of luxury vehicles and expensive EV models,” the report said, estimating that electric vehicles’ share of the U.S. market reached a record high of 11.6% in September.
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Crucial Quote
“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,” Erin Keating, an executive analyst at Cox Automotive, said in a statement. “Today’s auto market is being driven by wealthier households who have access to capital, good loan rates and are propping up the higher end of the market.”
Big Number
437,487. That is how many electric vehicles were sold in the third quarter of this year, something the report attributed to expiring government sales incentives for electric vehicles, which caused buyers to quickly finalize deals.
Key Background
Keating called the arrival of the all-time high prices “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.” Keating noted tariffs have “introduced new cost pressure” to the automotive industry. Auto tariffs are increasing costs and uncertainty, creating risk for production stalls and increased consumer costs that could drive down sales, according to S&P Global. President Donald Trump imposed a 25% base tariff on vehicles built outside the U.S. earlier this year, raising car prices by up to $6,000 for vehicles under $40,000, according to Kelley Blue Book.
Further Reading
New-Vehicle Average Transaction Price Hits Record High in September, Surges Past $50,000 for the First Time Ever (Kelley Blue Book)
Trump Says U.S. Will Impose 100% Tariffs Against China Following Mineral Trade Dispute (Forbes)