Average new vehicle costs surpass $50,000 as luxury sales rise nationwide

The common transaction worth for brand new automobiles within the US reached a file excessive in September.

In response to latest estimates from Kelley Blue Ebook, the typical transaction worth for brand new automobiles exceeded $50,000 for the primary time, after rising steadily for greater than a 12 months. That common transaction worth was up 2.1% from August and three.6% 12 months over 12 months, marking the largest annual acquire since spring 2023, based on the information.

When 2026 mannequin 12 months automobiles hit dealerships in September, the typical new car producer’s recommended retail worth (MSRP), or “asking worth,” additionally reached an all-time excessive of $52,183, based on the information. That is a rise of 4.2% 12 months on 12 months.

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Greater than 60 automobile fashions had a median gross sales worth of greater than $75,000, with almost 94,000 of those luxurious automobiles offered in September. That accounted for 7.4% of all new automobiles offered, up from 6% a 12 months earlier. Of the six-figure automobile class, the Cadillac Escalade was essentially the most in demand; complete gross sales of each variations reached 4,320 copies in September.

A brand new Mercedes-Benz EQS electrical automobile on the market at a dealership in Tucson, Arizona, on April 1, 2025. (Eric Thayer/Bloomberg by way of/Getty Pictures)

As costs attain new highs, incentive spending, which refers back to the sum of money automakers spend on issues like rebates and promotions, rose in September to 7.4% of the typical transaction worth, or about $3,700.

Cox Automotive govt analyst Erin Keating mentioned it’s vital to do not forget that the brand new car market is inflationary.

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“Costs rise over time, and at present’s market actually reminds us of that,” Keating mentioned, noting that the $20,000 car is now largely extinct, and plenty of price-conscious patrons are on the sidelines or within the used-vehicle market.

A BMW 745e Limousine wheel hub in a showroom in Berlin, Germany, on August 19, 2021. (Krisztian Bocsi/Bloomberg by way of Getty Pictures)

Autotrader editor-in-chief Brian Moody mentioned he knew at the present time was coming after seeing costs rise steadily in latest months.

“We’ve got been heading in direction of this crossroads for a while – the value of electrical vehicles, tariffs, authorities mandated gear, the growing reputation of hybrids, the continued reputation of vans and full-size electrical vans are all contributing to the upper common transaction worth.” mentioned Moody.

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Nonetheless, Keating famous that the auto market is at present pushed by wealthier households, who’ve higher entry to capital and good mortgage charges, and who in flip assist the upper finish of the marketplace for each gasoline and electrical vehicles.

A Ford dealership in Saint-Hubert, Quebec, Canada, on April 3, 2025. (Andrej Ivanov/Bloomberg by way of Getty Pictures/Getty Pictures)

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Moody mentioned common prices have been additionally pushed up as everybody rushed to purchase an electrical car earlier than the tax-funded incentive ran out.

The common transaction worth for brand new electrical automobiles final month was $58,124, up 3.5% from the revised decrease common transaction worth for electrical automobiles in August, based on information from Kelley Blue Ebook.