🕒 Created

Cox Automotive and Kelley Blue Book report that the average price of a new car reached a record high for 2025.

The average transaction price for a new car reached $49,855 last month, marking the highest figure recorded so far in 2025. This figure represents a 0.2 percent increase from June and a 1.9 percent increase from July 2025. While the average MSRP remains higher at $51,621, the transaction price rose due to tightening inventory and a decrease in automaker incentives. Automaker spending on incentives dropped to $3,192 per vehicle, the lowest level since January. Supply levels are tightening, with available inventory falling to 2.73 million vehicles. High-end brands like Porsche and Lincoln are seeing significant price jumps, though shoppers are gravitating toward more affordable compact cars and subcompact SUVs to manage costs. Even electric vehicle shoppers are facing higher prices, with the average transaction price for EVs rising to $56,126. Despite these trends, Bank of America Institute analyst David Tinsley notes that auto sales remain resilient, with higher-income households continuing to drive demand.

Sources