- On average, Americans paid $49,855 for a new car in July, marking the highest level so far this year.
- Incentives offered by automakers and dealers declined for the second straight month.
- Pickup trucks remain the most expensive new vehicle segment, averaging $66,980.
New car shoppers looking to beat the heat on rising prices might have to wait for them to cool, according to the latest monthly sales data from Kelley Blue Book. The average transaction price (ATP) on a new car increased to $49,855 in July, marking a new high point for 2026, but still below the record of $50,612 recorded last December.
The summer spike is somewhat typical as 2027 models begin rolling into dealer lots with the latest and greatest — and more expensive — features. Americans continue to spend the most on pickup trucks, which push the overall new car price with a segment average transaction price of $66,890. Yet more shoppers are buying more affordable small SUVs and compact cars in higher volumes.
“Consumers continue to gravitate toward more affordable segments, which is helping keep overall transaction price growth in check, but the steady flow of newer vehicles is providing some upward pressure on both ATPs and MSRPs,” Erin Keating, executive analyst at Cox Automotive, said in a statement. Cox Automotive is the parent company of Kelley Blue Book.
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Shoppers seeking a deal might be looking for a while. For the second month in a row, incentive spending such as dealer cash back or lower finance rates has declined. Meanwhile, in the first half of 2026, the used car market hit a price high not seen in more than three years.
Yet automotive financing has found new ways to extend loans to new car shoppers, with more car shoppers qualifying for loans at a rate not experienced since 2015.
Here’s a snapshot by segment of how shoppers are spending their money. These five segments account for 64% of total industry sales.
- Full-size pickup truck: $66,980, up 2.8% year over year
- Midsize SUV: $50,144, up 2.4% year over year
- Compact SUV: $37,745, up 2.7% year over year
- Subcompact SUV: $31,052, up 1.1% year over year
- Compact car: $27,904, up 2.6% year over year
Shoppers of electric vehicles also spent more in July after six months of declines. Led by Tesla, the average new price paid for an EV in July was $56,126, up 1.6% from last year and 1.2% from June.
