The Average New Car Sale Just Crossed $50,000 for the 1st Time Ever
Walking onto a new car lot today feels a whole lot different than it did a decade ago. The sticker shock isn’t just for the luxury SUVs or entry-level electric vehicles, either. It’s the universal baseline.
In September, Kelley Blue Book estimates the average transaction price of a new car in the U.S. hit $50,080
This is the first time it’s ever crossed that threshold.
Prices were up 2.1% from August and 3.6% higher than a year ago, marking the strongest annual jump since spring 2023.
Even as prices climb, retail sales are holding steady
Buyers with access to capital and favorable loan rates are keeping the market healthy, while more price-sensitive shoppers are moving to the used car segment.
Analysts say the new car market is now largely driven by higher-end models and luxury vehicles.
In September, incentives averaged 7.4% of the transaction price, or about $3,700, the highest level seen this year.
At the same time, the average manufacturer’s suggested retail price, or MSRP, for new vehicles reached a record $52,183.
A wave of 2026 model-year vehicles hitting dealer lots, combined with a strong mix of luxury cars and pricey electric vehicles, contributed to the milestone.
EVs continue to push the market upward
Kelley Blue Book estimates EVs made up 11.6% of new car sales in September, another record.
The average EV transaction price last month was $58,124, up 3.5% from August.
Sales in the third quarter exceeded 437,000 units, nearly 30% higher than a year ago, as buyers rushed to finalize deals before federal tax incentives expired.
Luxury vehicles also remain a major factor
More than 60 new car models carried average transaction prices above $75,000, accounting for 7.4% of total sales.
Cadillac’s Escalade still dominates this segment, selling over 4,300 units last month.
Analysts say the $50,000 average was inevitable. High-demand trucks, luxury vehicles, and a growing share of EVs are driving the market into uncharted territory. For today’s new car buyers, “affordability” is increasingly secondary to tech, style, and performance.
