New Vehicle Prices Dip Below $50,000 But Hit New January High
Kelley Blue Book (div. Cox Automotive) reports the average transaction price for a new vehicle sold by a U.S. dealer was $49,191 last month, setting a new January record. ATPs fell 2.2% from December’s $50,318 (slightly revised from KBB’s original report) but climbed 1.1% year-over-year.
Prices typically fall at the beginning of each year, analysts note, and MSRPs increased at a below-average pace (2.1%) last month. Manufacturer incentives averaged 6.5% of ATP (about $3,200), down from a 2025 high of 7.5% in December.
Compact SUVs like the Toyota RAV4, Honda CR-V and Nissan Rogue remained the highest-volume segment in January with a relatively modest $36,414 ATP.
“Consumers are still finding plenty of options below the industry average, especially in core segments like best-selling compact SUVs, but the disappearance of true entry-level vehicles continues to lift the floor higher,” writes Cox Executive Analyst Erin Keating in a release. “At the same time, strong sales of full-size pickups and large, luxury SUVs keep pulling the averages up, proving that demand for high-priced models remains incredibly resilient.”
