New-vehicle values are holding steady, according to new data from Kelley Blue Book (KBB). In its new report, the average new-vehicle transaction price (ATP) in May was mostly unchanged from April, as the new vehicle sales pace slowed. KBB says prices remained steady as automakers and dealers went to work to offset tariff-drive cost increases.
Here a few highlights of the study, and for all the data click here.
KBB says new-vehicle ATP held steady in May at $48,799, virtually unchanged from the revised April ATP of $48,811. Compared to May 2024, new-vehicle transaction prices were higher by 1.0%. The sales paces also slowed considerably over April - falling 15.6 million from 17.3 million.
Incentives increased a bit - from 6.7% of ATP in April to 6.8% of ATP in May. This, even as a number of automakers reduced their spending by more than 10% - those automakers being Volkswagen, Mazda, Land Rover, Volvo and BMW. Chrysler, Jeep and Ram also lowered incentives April. On the flip side, Tesla, Toyota and Nissan increased incentive spending significantly in May.
When looking at the average new-vehicle MSRP for May, it was $50,968, up slightly from the month prior, and up 2.1% year over year.
With new-vehicle prices holding steady, so, too, did transaction prices for many of the most popular, best-selling vehicles. Transaction prices and incentives were mostly unchanged in the Compact SUV and Mid-size SUV segments. Segments that saw prices climb the most month over month were Sports Cars, Luxury Cars and Luxury Subcompact SUVs. Popular Small/Mid-Size Pickup Trucks also saw higher prices.
"While tariff policy is adding uncertainty to the new-vehicle market, prices are holding remarkably steady, a reminder that auto industry change is often slow. Many automakers are keeping true to a promise to hold the line on pricing, at least in the near term. We are still expecting prices to move higher through the summer, as the inflationary impact of tariffs begins to hit. Right now, we believe dealer profitability is being squeezed, as costs on many products are going up, but raising retail prices in this environment is a real challenge," said Erin Keating, Executive Analyst, Cox Automotive.
New EV prices in May were lower year over year by 1.1%. Incentives were up significantly - with KBB reporting that the average incentive package went up from 11.6% of ATP in April to 14.2% of ATP ($8,225). That's more than twice the level of industry-wide incentives and up from 12.0% a year earlier. Tesla average transaction prices fell 1.5% to $55,277 last month. All Tesla vehicles aside from the Cybertruck showed a month-over-month decline. Tesla's best-selling vehicle, the Model Y, had an average transaction price in May that was 2.9% lower than in April, at $53,895. The Model Y is also the best-selling EV in the U.S.
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