On the Dash:
- U.S. new-vehicle ATP hit a record $50,080 in September, driven by luxury and high-end EV sales.
- EV market share and incentives remain significant, with a record 11.6% market share and an average EV price of $58,124.
- Wealthier buyers are propping up the high end of the market, while price-sensitive consumers increasingly focus on used vehicles.
According to Kelley Blue Book’s latest estimates, the average transaction price (ATP) of a new vehicle in the U.S. surpassed $50,000 for the first time in September. This milestone reflects strong demand for luxury and electric vehicles despite rising prices.
The September ATP reached $50,080, up 2.1% from August and 3.6% year over year, marking the largest annual increase since spring 2023. At the same time, the average manufacturer’s suggested retail price (MSRP) climbed to a record $52,183, a 4.2% increase from a year ago. Notably, incentive spending also rose slightly to 7.4% of ATP, or roughly $3,700, the highest level recorded in 2025.
A growing share of luxury and EVs helped drive the record prices, with KBB estimating the EV share of the U.S. market reached 11.6% in September, with an average EV transaction price of $58,124, up 3.5% from August. More than 60 models had ATPs above $75,000, which represents 7.4% of total sales, up from 6% in September 2024. High-end models like the Cadillac Escalade continue to dominate the six-figure segment, with 4,320 units sold last month.
Further, EV sales also surged in the third quarter, with 437,487 units sold and a market share of 10.5%, up nearly 30% from a year ago. September EV incentives were slightly lower than in August at 15.3% of ATP, or about $8,900. However, Tesla’s ATP has declined slightly to $54,138, down 6.8% from a year ago. This decrease results from the introduction of new, lower-priced versions of the Model 3 and Model Y, which will likely lower average transaction prices across the segment in the coming months.
The record ATP milestone underscores a market increasingly dominated by high-end and electrified vehicles. Analysts expect new EV models and pricing adjustments to continue shaping transaction prices in the months ahead.
