Average New Car Price Hits Record $51,109 in October, KBB Says
The average new car price reached a record $51,109 in October, Kelley Blue Book says. See how SUVs, trucks and compacts compare and what incentives did.
New vehicles sold in the United States cost an average of $51,109 in October, the highest figure Kelley Blue Book has recorded. The estimate, which uses data from its parent company Cox Automotive, is 1.3% above September and 2.1% above October 2025.
The sticker side moved the same way. KBB reported the average MSRP (the manufacturer’s suggested retail price) at $52,933, up 1.4% from September and 2.4% from a year earlier. Buyers of expensive SUVs and full-size pickups are pulling the average up.
How KBB measures the average price
The figure is the average transaction price, or ATP. KBB describes it as an estimate of what buyers paid in October before incentives, taxes and fees are counted. That makes it a measure of the price on the deal itself, not of what a buyer ends up paying out of pocket after rebates or add-on charges.
According to KBB, two things drove the October number: price inflation, and strong sales of midsize and full-size SUVs and full-size pickup trucks. Those vehicles sit at the upper end of the price range, so a larger share of them in the sales mix raises the overall average even when individual prices rise slowly.
KBB also noted that price inflation in October was below long-term averages. The record, in other words, came with a monthly increase smaller than the usual pace.
Incentives remain below long-term averages
Incentive spending rose modestly in October but stayed under its long-term average, KBB said. It accounted for 6.8% of ATP, compared with 6.7% in September 2026 and 6.5% in October 2025.
KBB’s reading is that automakers and dealers are not pushing hard to cut inventory or lift sales volume, even with prices at a record. The small rise in incentives did not contribute significantly to the October record, according to the report.
What buyers paid by segment
KBB broke out average transaction prices for five segments, each with its change from a year earlier:
- Full-size pickup truck: $67,912, up 1.4%
- Midsize SUV: $50,570, up 1.9%
- Compact SUV: $37,895, up 4.3%
- Subcompact SUV: $31,333, up 1.9%
- Compact car: $28,030, up 3.4%
Midsize SUVs led in sales volume, followed by compact SUVs. Full-size pickups came third. At $67,912, the average full-size pickup costs close to double what buyers pay for a typical compact SUV such as a Honda CR-V or Hyundai Tucson, according to Jalopnik’s reading of the KBB data.
Compact SUVs showed the fastest year-over-year increase of the five segments, at 4.3%. Full-size pickups showed the slowest, at 1.4%, though they remain the most expensive by a wide margin.
What this means for shoppers
A record average does not mean every vehicle costs $51,109. The number blends cheap compacts with expensive trucks, and it moves with what people choose to buy as well as with what automakers charge. A shopper looking at a compact car sees a very different price level than one looking at a full-size pickup, and the segment table above shows the spread.
Because incentives are still running below long-term averages, buyers are getting about the same share of the sticker price back in discounts as they did a year ago: 6.8% of ATP now, against 6.5% then. Dealers are not discounting more aggressively to move cars, which leaves less room to negotiate off the price.
For a closer look at current figures by body style and for electric vehicles, see this breakdown of what buyers pay by segment and for EVs.
What to watch next
KBB publishes the transaction price estimate monthly, so the November figure will show whether the mix of SUVs and trucks keeps pushing the average higher and whether incentive spending moves further above its 6.8% share.
Source: Jalopnik
