According to Cox Automotive’s Kelley Blue Book, new vehicle prices remained elevated in February, with the average transaction price (ATP) reaching $48,039, a 1.0% increase year over year. However, prices declined by 1.3% from January as incentives continued to rise.
Graph by Cox Automotive
Sales incentives were up 18.6% compared to February 2024, averaging $3,392 or 7.1% of ATP. Electric vehicle (EV) incentives surged to a record high, accounting for 14.8% of ATP, or roughly $8,162—more than double the industry average and a 44% increase over the past year. EV prices, at an ATP of $55,273, were 15.1% higher than the industry average and up 3.7% from February 2024.
At the lower end of the market, the Mitsubishi Mirage—the only new vehicle in the U.S. priced under $20,000—saw February sales decline 15% to 2,323 units. With reports indicating its discontinuation, the Mirage had an average incentive package of just 2.0% of ATP, far below the industry average. Mitsubishi remained the most affordable brand in February, with an ATP of $30,410, followed by Nissan at $32,262.
In contrast, sales of six-figure vehicles continue to soar. More than 52,000 new vehicles sold for over $100,000 in the first two months of 2025, up from 46,000 in the same period last year and a dramatic increase from just 12,000 in early 2020. Land Rover’s Range Rover led this segment, selling over 3,800 units in February.
Compact SUVs maintained steady demand, including popular models like the Chevrolet Equinox, Ford Escape, Honda CR-V, and Toyota RAV4. The segment accounted for 18% of all vehicle sales, with an ATP of $36,198—up 0.5% year over year.
Notably, 11 of the nearly 40 brands tracked by Kelley Blue Book had lower ATPs than a year ago. Stellantis brands—Chrysler, Dodge, Jeep, and Ram—saw the most significant declines. Jeep prices fell by more than 11%, the largest drop among all brands, while Ram ATPs declined by nearly 7%.
According to Cox Automotive Executive Analyst Erin Keating, affordability remains a challenge, with ATPs up 25% since February 2020. Meanwhile, incentives have declined 13% over the same period, and higher auto loan rates continue to strain household budgets.
Despite affordability concerns, the luxury and high-income segments continue to drive industry momentum. Keating noted that sales of six-figure vehicles have quadrupled since early 2020, underscoring the growing divide between mainstream and high-end vehicle markets.
