Average new car costs exceed $50,000 as luxury car sales surge across the country

Average new car Transaction prices in the United States reached a record high in September.

The average new-car deal price surpassed $50,000 for the first time after rising steadily for more than a year, according to recent estimates from Kelley Blue Book. The average deal price rose 2.1% from August and 3.6% year over year, representing the largest annual increase since the spring of 2023, according to the data.

As 2026 model year vehicles begin showing up at dealer lots in September, the average new car manufacturer’s suggested retail price (MSRP), or “asking price,” also reached a record high of $52,183, according to the data. This is an increase of 4.2% year over year.

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More than 60 vehicle models had an average selling price of more than $75,000, with nearly 94,000 of these luxury vehicles sold in September. This represents 7.4% of all new cars sold, which is up from 6% the previous year. Among the six-figure segment, the Cadillac Escalade was the most in demand, with total sales of both versions reaching 4,320 units in September.

While prices are hitting new highs, incentive spending, which refers to how much money automakers spend on things like discounts and promotions, rose in September to 7.4% of the average transaction price, or roughly $3,700.

It’s important to remember that the new-vehicle market is inflationary, said Erin Keating, executive analyst for Cox Automotive.

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“Prices go up over time, and today’s market certainly reminds us of that,” Keating said, noting that the $20,000 car is now mostly extinct, and that many price-conscious buyers are being sidelined or wandering the used car market.

Brian Moody, executive editor at Autotrader, said he knew this day was on the horizon after watching prices rise steadily over the past few months.

“We’ve been heading to this intersection for some time — electric vehicle prices, tariffs, expensive government equipment, Moody’s said the growing popularity of hybrid vehicles, the continued popularity of trucks, and full-size electric trucks are all contributing to the higher average transaction price.

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However, Keating noted that the auto market is currently driven by wealthier households, which have greater access to capital and good loan rates, which in turn supports the upper end of the market for both gas vehicles and electric vehicles.

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Moody’s said the average cost also rose because everyone was rushing to buy an electric car before the crisis Tax-funded incentives run out.

The average transaction price for new electric vehicles last month was $58,124, up 3.5% from the revised lower average transaction price for electric vehicles in August, according to data from Kelley Blue Book.