Kelley Blue Book (KBB) estimates the average transaction price (ATP) for a new vehicle in the U.S. dipped to $49,766 in October, down 0.4% from September’s record but still 2.1% above a year earlier. The pullback followed a sharp month-over-month contraction in EV sales and lower EV share after federal incentives ended at September’s close, KBB said.
EV unit sales fell to 74,835 in October, 48.9% below September and 30.3% below October 2024, according to Cox Automotive’s initial estimates.
The average manufacturer’s suggested retail price (MSRP) also edged lower to $51,841, off September’s peak but 2.6% higher year over year. Incentive outlays averaged 6.5% of ATP, down from 7.3% in September and 7.6% a year earlier.
"October's dip in average transaction prices was anticipated and reflects a natural market adjustment after September's record highs. Even with the pullback, prices remain elevated year over year,” said Erin Keating, executive analyst with Cox Automotive. “Fortunately for automakers, there is continued strength in consumer demand, especially from well-heeled households. Consumers remain engaged, and while affordability challenges persist, the industry is adapting with incentives and product mix shifts. We've been anticipating a slowdown in the market. This is a story of moderation, not retreat."
Upscale EVs, Full Size Pickups Keep Prices Up
Cox Automotive said consumers shifted away from lower-priced EVs after federal sales incentives expired at the end of September, which pushed the remaining EV mix more upscale. While this lowered the overall ATP, it lifted the EV ATP to $59,125, up 1.6% month over month and 2.3% year over year.
Full-size pickups reached a record October ATP of $66,462 with incentives at 8.4% of ATP; the average MSRP for a full-size pickup was $70,351.
Cadillac ATPs rose 22% year over year, buoyed by a robust EV strategy and a richer Escalade mix, while Porsche ATPs increased 13%, with analysts citing imported-vehicle tariff exposure as a cost pressure. Lincoln and Chevrolet ATPs advanced well above the industry average, while Acura, Jeep and Tesla posted notable year-over-year declines.
