New-vehicle prices climbed sharply in April, reaching an average transaction price (ATP) of $48,699, according to the latest Kelley Blue Book report from Cox Automotive. The 2.5% month-over-month increase significantly outpaced the typical 1.1% rise seen in April over the last decade, marking the second-highest April increase in 10 years. Only April 2020 posted a higher jump at 2.7%.
The price surge comes amid growing consumer demand and uncertainty surrounding potential new tariffs. President Trump’s tariffs have had a ripple effect across vehicle segments and automakers, driving up costs and reshaping incentive strategies. Overall sales incentives dropped to 6.7% of ATP in April, the lowest level seen since the summer of 2024.
Despite the pricing increase, the April new-vehicle sales pace reached 17.3 million units, the strongest April performance since 2021. However, incentives continue to shrink. The six-month average leading up to April was 7.4% of ATP, highlighting a pullback in discounting even as consumer interest remains strong.
Electric vehicle (EV) pricing also reached its highest point of the year. EV ATPs climbed to $59,255 in April, up 3.7% year-over-year and 0.2% higher than in March. Incentives for EVs declined for the second straight month to 11.6% of ATP, continuing a downward trend from a peak of 13.9% in November 2024. EV sales, however, dipped nearly 6% month-over-month, though year-to-date totals remain up by 5.4%.
Among luxury imports, Porsche and Land Rover saw standout gains in both ATP and sales volume, leading the industry with average prices exceeding $113,000. Both brands are fully imported and are expected to face higher future costs due to tariff exposure, fueling April’s purchase surge.
Segment-specific data showed price stability for Compact and Subcompact SUVs, though incentives declined. Compact SUV incentives dropped from 8.2% to 7.8% month-over-month. Meanwhile, several brands, including Audi, Volvo and Cadillac posted higher ATPs with reduced incentives, while others, such as Buick and Acura increased discounts to maintain competitiveness.
Ford maintained steady pricing in April while emphasizing its American-built lineup. Notably, the Mexico-built Maverick pickup saw a pricing dip alongside record-high incentive spending, helping it achieve a monthly sales record of 20,183 units.
