The average transaction price of a new vehicle surpasses $50,000 for the first time ever.
New car prices crossed the threshold of $50,000 in September, according to data released by Kelley Blue Book. The prices jumped 2.1% from August and 3.6% from a year ago. The incentives also increased to 7.4% of ATP, or $3,700, the highest level in 2025. At the same time, the average MSRP hit a new record of $52,183, 4.2% higher than it was this time last year.
KBB believes the new ATP record was broken due to luxury vehicles and expensive EVs, estimating the EV share of the US market at 11.6%, a record high last month. Further, more than 60 models with ATPs above $75,000 were sold in September, forming 7.4% of total industry sales, 6.0% higher than in September 2024. Models like the Land Rover ($103,786), Porsche ($119,853), and Mercedes-Benz ($75,700) had some of the highest ATPs in the market.
Erin Keating, Cox Automotive's executive analyst, noted in a statement, “Prices go up over time, and today's market is certainly reminding us of that. The $20,000 vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market. Today's auto market is being driven by wealthier households who have access to capital and good loan rates and are propping up the higher end of the market.”
Despite soaring prices, EVs are still being sold. The KBB’s report shows that 437,487 electric vehicles were sold in the third quarter of 2025, achieving 10.5% of the market. The increase in EV sales volume was also driven by the expiration of government incentives in September, as customers rushed to finalize deals. Thus, the EV ATP in September was $58,124, 3.5% higher than in August.
However, Tesla's ATP has slightly decreased to $54,138, 6.8% lower than last year. With the introduction of the lower-priced Model 3 and Model Y, the ATP across the segment will likely decrease in the months ahead.