- The average American new car buyer paid $50,089 in August.
- Prices usually rise through the second half of the year, and are increasing more slowly than normal at the moment.
The average new car in America sold for $50,089 in August, drifting over the $50,000 line for the first time since last December, according to Kelley Blue Book data.
Despite the eye-catching headline, prices are increasing more slowly than they would in a normal year. Prices sit 1.9% higher than a year ago. A year-over-year increase of around 3% is not unusual.
Related: Is Now the Time to Buy, Sell, or Trade in a Car?
Inflation is a factor in all prices this year, but consumer choice plays an outsized role in car prices. Of the five best-selling segments, just two had averages over $50,000. But America’s appetite for midsize SUVs and full-size trucks pulls the overall average up.
- Midsize SUV: average transaction price of $50,315, up 1.6% year over year
- Compact SUV: average transaction price of $37,722, up 1.1% year over year
- Full-size pickup truck: average transaction price of $67,446, up 2.1% year over year
- Subcompact SUV: average transaction price of $31,149, up 2.2% year over year
- Compact Car: average transaction price of $27,997, up 2.9% year over year
Compact SUVs have outsold midsize SUVs for much of 2026, but that trend reversed last month as Toyota dealers dealt with a temporary shortage of the hyper-popular RAV4.
New Model Year Means Price Increases
- The steady arrival of 2027 models on sales lots explains the late-year price increase.
Erin Keating, executive analyst with Kelley Blue Book parent company Cox Automotive, explains, “We expected transaction prices to move back above the $50,000 mark in 2026, as new-vehicle prices typically increase through the year and especially in the second half, when next-model-year vehicles begin arriving at dealerships.”
She also notes that “many American households are under significant financial pressure, which is steering more shoppers toward lower price points. The continued strong growth of subcompact SUVs highlights how important affordability remains in today’s market.”
The average sale included incentives worth 6.5% of the purchase price.
EV Prices Sliding
- While most prices are increasing, electric car prices continue to fall toward parity with gas-powered cars.
Electric vehicle (EV) prices continue to fall. The average EV sold for $54,813 last month, 1.2% lower than the month before and 2.7% lower than last August.
Dealers included incentives worth 12% of the purchase price in the average EV sale.
