On the Dash:
- Average new car price hit a record $51,109 in October, topping December’s $50,614, according to Kelley Blue Book data.
- Compact SUV and car sales are growing fastest, but full-size trucks keep pushing prices up.
- Kelley Blue Book expects more records in November and December; prices often drop in January.
According to Kelley Blue Book data, the average new vehicle buyer in the U.S. paid a record $51,109 in October, topping the previous high of $50,614 set last December. Sales of lower-priced compact cars and SUVs are rising, but they aren’t growing fast enough to offset demand for expensive full-size trucks.
The record reflects a K-shaped market, where high-end buyers are seeking out expensive, well-equipped pickups while families dealing with high gas prices and inflation are driving growth in compact SUVs and compact cars. Discounts are also thin by pre-pandemic standards, and new EV prices turned higher in October after falling for most of 2026.
Top five segments by volume
The five highest-volume new vehicle segments in October accounted for 64.4% of all sales. Each segment’s average transaction price (ATP) and year-over-year change were:
- Midsize SUV: $50,570, up 1.9%
- Compact SUV: $37,895, up 4.3%
- Full-size pickup truck: $67,912, up 1.4%
- Subcompact SUV: $31,333, up 1.9%
- Compact car: $28,030, up 3.4%
Discounts made up just 6.8% of the average sale in October. Before the pandemic, discounts over 10% were relatively common, and they’ve never fully returned to the market.
New EV prices fell for most of 2026, but that trend reversed in October, when the average transaction price rose 1% from September to $56,220. It’s still down 2.7% year over year, and dealers continue to discount EVs heavily, with incentives accounting for 11.3% of the average sale price.
A K-shaped market at work
The phrase “K-shaped economy” has gained cultural grip in 2026, and the car market is a clear example. High-end buyers on the top arm are driving prices up as they seek out expensive pickup trucks.
Automakers generally don’t sell pickups with luxury brand badges, but they do sell extremely well-equipped trucks that share badges with everyday work trucks, and those are popular in 2026. Nearly every full-size truck is available in the mid-$40,000 range, yet the average truck buyer paid $67,912 last month.
Conversely, many families are looking for lower prices because of high gas prices and inflation. Sales of compact SUVs, which average under $38,000, and compact cars, which average under $30,000, have grown faster than any other segment.
Looking ahead
Transaction prices tend to peak in December, when higher-priced vehicles from the next model year take over sales lots and Americans buy more luxury cars near the holidays. That pattern is why Kelley Blue Book anticipates further records in November and December.
October’s $51,109 topped the previous record by $495, and it followed a steady climb through late summer. CBT News reported that August’s average topped $50,000 for the first time since December, and that September’s $50,562 landed just $52 below the record.
Prices often drop in January, and that held true earlier this year. The average new vehicle price slipped back to $49,191 in January, though it was still the highest January figure on record.
