- The average new car buyer in America paid $49,275 in March, 3.5% more than a year earlier.
- Despite increasing gas prices, Americans have not noticeably turned toward more fuel-efficient vehicles.
The average American new car buyer paid $49,275 in March. That’s 3.5% more than buyers paid a year ago, according to Kelley Blue Book data.
Price increases are accelerating. Last December, the average transaction price for a new car sat 0.5% higher year over year. In January, prices were up 1.9%. In February, they stood 3.3% higher than a year before.
Related: Is Now the Time to Buy, Sell, or Trade-In a Car?
Some of the increase is likely due to tariffs. Automakers delayed the impact of the tariffs the White House enacted last April, but have been unable to keep sticker price increases from continuing indefinitely.
But some of the increase comes from consumer choice. Americans continue to choose more expensive vehicles, particularly in the full-size truck class.
Of the five best-selling segments of the market, three had an average transaction price well below the overall average:
- Midsize SUV: $49,853, up 2.8% year over year
- Compact SUV: $37,085, up 2.1% year over year
- Full-size pickup truck: $65,964, up 2.8% year over year
- Subcompact SUV: $30,612, up 2.2% year over year
- Compact car: $27,469, up 1.1% year over year
Notably, every full-size truck on the market has a starting price near, or even below, $40,000. Yet the average truck sold for at least 60% more.
Automakers and car dealers offset some of the price increase. The average sale included discounts worth 7.2% of the sales price, up from 7.1% a month before.
Gas Prices Had Little Impact
- A month of high gas prices has not changed how Americans car shop.
Rising gas prices had little impact on shopper behavior, with no noticeable turn toward more fuel-efficient vehicles.
Related: Fuel Economy and Gas Prices
Erin Keating, executive analyst with Kelley Blue Book parent company Cox Automotive, explains, “Despite higher fuel costs, U.S. consumers stayed focused on larger segments in March. The sales numbers remind us again that buying behavior does not change quickly, and that most Americans have ridden the gas-price rollercoaster before. They know where the ride ends. And even this week, prices retreated significantly on hopes of a holding peace in the Middle East.”
EV Prices Fell
- Electric vehicle (EV) prices fell 2.8% compared to last March.
The average electric vehicle (EV) sold for $54,508 last month, 1.4% lower than in February and 2.8% lower than a year ago. That marks the third straight month of declining EV prices.
The average EV buyer benefited from a 14.6% discount.
Tesla sales increased for a second straight month, but remained 8.4% below March 2025 levels.
