New-vehicle average transaction prices (ATPs) surged to $48,699 in April, marking a 2.5% month-over-month increase -- well above the typical April increase of 1.1%, according to Kelley Blue Book data released by Cox Automotive.
The jump in pricing was the largest for any April since 2020 and reflects growing market pressures amid ongoing vehicle shortages, rising demand and new import tariffs.
“Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing,” said Erin Keating, executive analyst at Cox Automotive. “The pricing landscape is varied depending on the automaker, car segment and specific models -- some are cutting incentives, others are in high demand, and the supply isn’t evenly distributed across the board.”
Year over year, April ATPs were up 1.1% -- still below long-term norms of 3% annual growth, but higher than recent monthly comparisons. Notably, overall incentives fell to 6.7% of ATP, down from 7.0% in March, the lowest since summer 2024.
Among key vehicle categories, the compact SUV segment held steady at $36,416 but experienced a decline in incentives, dropping to 7.8% from 8.2% the previous month. Subcompact SUVs showed a similar pattern. Meanwhile, sales for Porsche and Land Rover surged despite high price points, with ATPs exceeding $114,000 and $113,000 respectively, contributing significantly to the overall industry ATP increase.
Results across major automotive brands were mixed. Audi, Land Rover and Volvo saw higher ATPs with reduced incentives, while Buick, Acura and BMW opted for higher incentive spending and lower prices. Ford remained largely steady in both pricing and incentives, though the Mexico-built Maverick pickup saw a notable uptick in incentives to 6.6% of ATP, contributing to record monthly sales of 20,183 units.
EV Prices Rise, But Incentives and Sales Slip
The electric vehicle (EV) market also saw notable shifts. EV ATPs hit their highest point in 2025 at $59,255, up 3.7% year over year and slightly higher than March’s revised figure of $59,132. At the same time, EV incentives dropped for the second consecutive month, falling to 11.6% of ATP -- a sharp decline from their November 2024 peak of 13.9%.
Tesla remained the category leader with more than 45,000 EVs sold in April -- its strongest month of 2025 -- largely driven by the refreshed Model Y. Tesla’s ATP reached $56,120, although sales of its high-ticket Cybertruck dropped below 2,000 units for the first time in a year.
Despite Tesla’s performance, overall EV sales slipped nearly 6% month over month, though they remain up 5.4% year to date.
