New-vehicle pricing remained relatively stable in May, offering some relief after earlier increases this year. The average transaction price (ATP) declined 0.5% from April to $49,220, while rising just 1.2% year over year—the smallest annual increase seen in 2026 and well below historical averages. At the same time, manufacturer incentives increased to 7.1% of ATP, continuing a gradual upward trend as automakers work to support sales. Popular segments such as compact SUVs, midsize SUVs, and full-size pickups all posted price increases, driven by strong demand, new model launches, and tighter inventory in certain categories.

For fleet operators, the combination of moderating vehicle prices and higher incentive spending may create opportunities to improve acquisition costs, particularly as manufacturers become more competitive. The EV market also remains favorable from a pricing standpoint. Electric vehicle transaction prices declined for the 11th consecutive month, falling 4% year over year, while incentive levels remained significantly above the industry average. As fleets evaluate replacement cycles and electrification plans, softer EV pricing and stronger incentives could help offset some of the higher upfront costs that have historically challenged broader EV adoption.