New Car Prices Top $51,000 for First Time, Kelley Blue Book Says
The average new vehicle price hit a record $51,109 in October, per Kelley Blue Book. See segment prices, EV discounts and what loan rates add to the cost.
The average price paid for a new vehicle in the United States rose to $51,109 in October, the first time it has topped $51,000, according to Kelley Blue Book data reported by Motor1. The figure is an all-time record.
This average transaction price (ATP), the amount buyers actually pay, is $649 above September’s. That is a 1.3 percent monthly gain and 2.1 percent more than a year earlier. The average manufacturer’s suggested retail price (MSRP) reached $52,933, up 1.4 percent from September and 2.4 percent from October 2025.
Mid-size SUVs take the top sales spot
Mid-size SUVs became the highest-volume segment in October, passing compact SUVs, which led in September. Sales in the segment jumped nearly 10 percent from a year earlier. Motor1 names shoppers’ steady move toward larger, pricier SUVs and pickups as a main reason the overall average keeps climbing.
Kelley Blue Book’s October averages for the five biggest segments, which together made up 64.4 percent of new-vehicle sales, were:
- Mid-size SUVs: $50,570, up 1.9 percent from a year earlier
- Compact SUVs: $37,895, up 4.3 percent
- Full-size pickups: $67,912, up 1.4 percent
- Subcompact SUVs: $31,333, up 1.9 percent
- Compact cars: $28,030, up 3.4 percent
Compact cars remain among the cheapest vehicles on sale, and their average still rose over the year.
EV prices are lower than a year ago, and discounts are bigger
The average new electric vehicle cost $56,220 in October, up 1 percent from September but 2.7 percent below October 2025. Incentives and discounts on EVs averaged 11.3 percent of the transaction price, against 6.8 percent for the industry as a whole.
Tesla’s average transaction price was $54,194. It slipped from September and is 1.2 percent above a year ago. Kelley Blue Book estimates Tesla sold 1,914 Cybertrucks in October, the truck’s best month in more than a year, and puts its average price at $92,380. The Cybertruck is now discontinued, and the stronger sales pushed Tesla’s overall average up.
What this means for buyers’ budgets
The Independent Journal Review notes that the 2.1% annual increase is slower than inflation and slower than the average yearly increase from 2012 to 2021. It cites tariffs and demand for larger, better-equipped vehicles as contributors to the high prices, while sales of lower-cost compact cars and SUVs have also grown.
The average price leaves out loan interest, which adds a large amount to the cost of owning a vehicle. Rates exceed 7% for new cars and are around 11% for used cars, according to the same report. With prices and borrowing costs both high, some buyers are taking longer loans and paying higher monthly amounts.
Motor1 writes that incentives remain relatively restrained and that shoppers should not expect discounts to bring prices down soon.
Sources: Motor1, Independent Journal Review
