- The average new car sold for $50,080 last month — a record high
The average American new car buyer paid $50,080 in September — a new record, and the first time the figure has ever topped the $50,000 mark.
New car prices have risen consistently for over a year without a downward tick.
The ATP last month was up 2.1% from August and was higher year over year by 3.6%. The annual gain of 3.6% in September was the largest gain since the spring of 2023.
The record comes even though automakers and dealers are offering new discounts. Incentives made up 7.4% of the average sale in September — the highest they’ve reached since 2025.
Tariffs, Luxury Shoppers, EV Tax Credit Sunset All Contributed
- Three factors contributed to the spike: tariff costs, luxury shoppers, and a rush to claim the expiring EV tax credit
New car prices normally rise in early fall as cars from a new model year begin to reach sales lots.
This year, those increases were exacerbated by three factors: tariffs, EVs, and luxury vehicles.
Hefty tariffs have added to the sticker price of most cars. Automakers held off on price increases for months after the tariffs launched, with some losing money to sell more cars while they waited to see if trade negotiations brought the levies down. Now that the White House has reached long-term trade deals locking tariffs in place, many automakers say they can’t hold off raising prices any longer.
September also saw a rush of new electric vehicle (EV) buyers, as Americans hurried to claim a $7,500 federal EV tax credit before it expired at the end of the month. EV prices remain higher than prices for gasoline-powered cars. The average EV sold for $58,124 last month.
Finally, Americans simply chose more expensive cars in September. Sales of luxury vehicles surged. Fully 7.4% of vehicles sold in the U.S. last month had MSRPs over $75,000, up from 6% a year ago.
Erin Keating, executive analyst with Kelley Blue Book parent company Cox Automotive, explains, “Today’s auto market is being driven by wealthier households who have access to capital, good loan rates, and are propping up the higher end of the market.” She adds, “While there are many affordable options out there, many price-conscious buyers are choosing to stay on the sidelines or cruising in the used-vehicle market.”
