New-vehicle prices in the U.S. held steady in September, with the average transaction price (ATP) reaching $48,397, a slight rise from August but 0.4% lower than the same time last year, according to data from Kelley Blue Book.
This pricing stability has been a key trend in 2024, with new-vehicle prices showing minimal fluctuations since the start of the year.
"Incentive spending in September increased for the third straight month, helping to support sales volume," said Erin Keating, Cox Automotive executive analyst. The average incentive package for new vehicles in September amounted to 7.3% of ATP, or $3,522, up from 7.2% in August and higher than the 4.8% reported a year ago.
A significant factor driving the pricing trend is the shift in consumer preference towards smaller, more affordable vehicles. Models like the Chevrolet Trax, Toyota Corolla and Hyundai Elantra, all transacting around $25,000, have gained popularity.
“Many buyers are choosing smaller, less expensive vehicles,” said Charlie Chesbrough, Cox Automotive senior economist, noting that subcompact and compact SUVs have outperformed other segments, contributing to lower market-wide prices.
Conversely, sales of higher-priced vehicles like full-size pickup trucks and mid-size SUVs have declined, further pulling down the average. Full-size pickups, with ATPs above $65,000, have seen shrinking market share year over year, while mid-size SUV sales dropped more than 5% through Q3 2024, according to Kelley Blue Book research.
In the EV market, the average transaction price in September stood at $56,351, down 0.9% from the previous year. Incentive spending on EVs remained strong, though slightly lower than in August, averaging $6,904 or 12.3% of ATP. Tesla, the industry leader in EV sales, saw its ATP increase by 13.6% year over year to $58,212, though prices for its core Model 3 and Model Y dropped month over month.
The luxury Cybertruck continued its upward pricing trend, reaching an average price of $116,706 in September, with more than 5,000 units sold despite its high cost.
