Overview
- Kelley Blue Book reports the average transaction price reached $50,080 in September, up 2.1% from August and 3.6% year over year, the biggest annual gain since spring 2023.
- EV purchases surged ahead of the Sept. 30 tax-credit cutoff, driving a record 437,487 Q3 sales at an average of $58,124 and lifting overall prices.
- With the incentive now gone, KBB analysts say EV demand and the overall average price may ease in the coming months.
- Strong luxury sales and wealthier households are sustaining the upper end of the market, according to Cox Automotive’s Erin Keating.
- Tariff-driven manufacturing costs and higher ownership expenses mean many buyers face total monthly outlays near $1,215, pushing more shoppers to consider used cars and leasing.