A new record for new-car prices
A new report published by Kelley Blue Book and its parent, Cox Automotive, says that average new-vehicle prices reached an all-time high in the last month of 2025. Initial Kelley Blue Book estimates show that the average transaction (ATP) price paid for a new vehicle in December 2025 was $50,326, a figure up from 0.8% from the same month in 2024, and up over 1.1% from November 2025's ATP of $49,814.
Notably, this new figure is a callback to figures recorded in September, when Cox reported average transaction prices that reached a then-all-time high of $50,080, a figure influenced by transactions involving more expensive luxury and electric cars during the month.
Cox also found that the average new-car manufacturer’s suggested retail price (MSRP) also set a record in December at $52,627, up 1.2% from the same month in 2024 and the eighth straight month where average MSRPs were above $50,000. Additionally, incentive spending increased to 7.5% of ATP, marking December 2025 as the highest point, although still lower than the 7.9% rate recorded in December 2024.
Stellantis
In a statement, Cox Automotive Executive Analyst Erin Keating said that elevated transaction prices are quite normal for December, as the market "delivers a strong mix of high-end and luxury vehicle sales" towards the end of the year. Keating added that the ATP figure is not an end-all, be-all of pricing trends, as it reflects what actually sells, rather than what wares automakers have on display.
"It’s important to remember, the Kelley Blue Book ATP is a reflection of what was sold in a given month, not what is available," Keating said. "Last month, nearly 20% of shoppers bought luxury, a peak for 2025 – and that doesn’t include the volume of high-end pickups that were snapped up by affluent shoppers."
Keep on truckin'
Notably, KBB and Cox said that a major driver behind this elevated ATP level is more expensive varieties of vehicles, especially "strong sales of full-size pickup trucks." According to the market experts, December 2025 was the best sales month for full-size pickup trucks in five years and the sixth-best month within the decade, as more than 233,000 new trucks were sold from dealers to customers.
On average, the transaction price paid for a full-size pickup in December was $66,386, which is reflected in the average transaction prices of notable Detroit mainstays. A closer look into Cox's data shows that in December 2025, the ATPs of F-150 maker Ford, Ram Trucks, Sierra maker GMC, and Silverado maker Chevrolet were well above the $50,326 industry-wide average.
The ATP of General Motors' Chevrolet brand was the lowest of the group, with a slightly above-average figure of $50,433 in December, while Ford had a higher ATP of $57,614. At the same time, the December 2025 ATPs at Ram and GMC were substantially higher than the industry average, as their offerings left average consumers forking over $64,607 and $67,196, respectively.
Incentives are driving EV sales
Despite this, pricing relief wouldn't be found in the electric route, as the segment is also facing higher pricing well above the entire industry's ATP. Per KBB and Cox, the average price paid for a new EV in December 2025 was $58,034, a figure up 2.4% from $56,691 in December 2024.
Though these prices are high, sales of EVs are being carried by heavy, "record territory" incentives, as they made up 18% of ATPs last month. One brand that Cox pointed out was Tesla, as the average price paid for a new Tesla in December 2025 was $53,680, a figure representing a 2.9% year-over-year dip as incentives jumped as high as 19.5% of ATPs during the month.
As a result, sales incentives for EVs helped push EV sales above 84,000 units in December 2025, the best result since the government-backed sales incentives were taken away. In total, Cox and KBB estimate that about 1.28 million EVs were sold in 2025, down by about 2% from 2024, which they expect to equalize in 2026 as new models and continued improvements in the U.S. charging infrastructure make a mark.
Final thoughts
Looking ahead to 2026, the automotive world is set for some big changes due to shifting consumer tastes and tech advancements. Additionally, the strong sales of full-size pickup trucks show that, despite their higher price tags, people continue to want them.
Even though new car prices have skyrocketed, the rise of luxury and high-end models indicates that higher-income buyers are influencing the market. Cox data cited by the Los Angeles Times shows that new-car sales among households with annual incomes over $150,000 have increased by a whopping 45% since 2019. Over the same period, sales dropped by 7% among families with incomes between $75,000 and $150,000, while they’ve dipped by 30% during the same period among those earning $75,000 or less. All in all, affordability and pricing, consumer preferences, and market trends are going to have a big impact on the automotive industry going into 2026.
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