The average price of new cars in the United States crossed the $50,000 mark for the first time in September, according to new estimates from Kelley Blue Book (KBB). Prices have been climbing steadily for more than a year, and the pace accelerated this summer — but that hasn’t stopped Americans from buying.
KBB says September’s record average transaction price (ATP) was partly driven by luxury models and electric vehicles, which pushed the market into record territory. Electric vehicles accounted for about 11.6% of all new vehicles sold last month, also a record high. The average electric vehicle sold for $58,124, up 3.5% from the adjusted August figure.
In the third quarter, electric vehicle sales reached another milestone: 437,487 electric vehicles were sold in the United States, giving them a market share of 10.5%. This represents an increase of almost 30% compared to the same period last year. As government incentives for electric vehicles expire at the end of September, many buyers have been rushing to lock in their purchases.
Year-over-year, the average EV transaction price is virtually flat, down just 0.4%. Incentives averaged 15.3% of ATP in September, or about $8,900 per vehicle – slightly lower than August but higher than a year ago, when incentives averaged 13%.
Tesla, which continues to dominate the electric vehicle market, recorded an average ATP of $54,138 in September. This is a slight decrease from August and 6.8% from the previous year. With Tesla recently introducing the new Standard versions of the Model 3 and Model Y, KBB expects average segment prices to decline in the coming months. Erin Keating, executive analyst at Cox Automotive, believes the market is “ripe for disruption.”
“It’s important to remember that the new vehicle market is inflationary. Prices rise over time, and today’s market certainly reminds us of that,” Keating said. “The $20,000 vehicle is now largely gone, and many price-conscious buyers are being price-conscious or moving into the used-vehicle market. Tariffs have introduced new cost pressure on the business, but September’s pricing story was primarily driven by the healthy mix of electric and premium vehicles, pushing new-vehicle ATP into uncharted territory.”
Learn more: US electric vehicle sales break records in August as Tesla loses ground
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