New vehicle prices continued to rise in April, though at a slower pace than earlier this year. According to Kelley Blue Book, the average transaction price for a new vehicle reached $49,461, up 1.8% from last year and 0.7% from March. While prices increased more than usual from month to month, the yearly gain was still below the long-term average of about 3.6%, suggesting that the market is beginning to stabilize. Higher prices in popular categories like midsize SUVs, compact SUVs, and full-size pickup trucks helped push averages up, while weaker luxury vehicle sales kept overall growth lower. At the same time, the average manufacturer’s suggested retail price (MSRP) hit a record high of $51,607 in April. Incentives and discounts declined slightly compared to March as inventory levels tightened and overall sales volume slowed.

Among the top-selling vehicle segments, midsize SUVs remained the most popular for the third month in a row, with prices rising 2.6% year over year. Compact SUVs, full-size pickups, and subcompact SUVs also saw price increases near or above 3%. Cox Automotive analyst Erin Keating explained that current price increases are being driven more by the types of vehicles consumers are buying and tighter supply levels rather than strong consumer demand. Electric vehicle prices also changed direction in April, rising 1.4% from March to an average of $55,211, although EV prices were still nearly 5% lower than a year ago. Tesla prices continued to decline overall, especially for the Model Y, which remained the best-selling EV in the U.S. despite an 8.3% drop in price compared to last year.