New-Vehicle Prices Climb in February as Incentives and EV Discounts Grow
New-vehicle prices increased in February as the market recovered from a slower January, according to estimates from Kelley Blue Book, a brand of Cox Automotive. The average transaction price (ATP) for a new vehicle reached $49,353, up 3.4% from a year earlier and 0.3% higher than January.
The average manufacturer’s suggested retail price (MSRP) also remained high. For the 11th straight month, the average sticker price was above $50,000, reaching $51,440 in February. Sales incentives increased slightly to 6.9% of ATP, up from 6.5% in January and close to last year’s level.
Among major segments, midsize SUVs averaged $50,148, while compact SUVs averaged $36,807. Full-size pickup trucks had the highest prices at $66,157. Subcompact SUVs and compact cars remained the most affordable, with average prices of $30,836 and $27,341.
Electric vehicle prices declined slightly. The average EV price was $55,300, down 1.4% from last year. Incentives for EVs rose to 14.2% of ATP, more than double the industry average. Meanwhile, Tesla saw its average transaction price increase to $53,821, but its February sales fell about 9% year over year.
Rising Vehicle Prices and Fewer Entry Models Create Challenges for Fleet Buyers
The U.S. auto market is facing a growing affordability challenge that could also impact fleet buyers. According to industry data reviewed by Reuters, automakers are offering fewer lower-priced models while focusing more on larger, higher-end vehicles. This shift has pushed the average price of a new vehicle in the U.S. to about $47,000.
Canadian Used-Vehicle Prices Decline in February Wholesale Market
Canada’s used wholesale vehicle market saw steady price declines in February, with most segments losing value week after week. Overall prices dropped between 0.34% and 0.75% for trucks and SUVs, and between 0.37% and 0.67% for cars.