Wednesday September 10, 2025
ATLANTA, Sept. 10, 2025 – New-vehicle prices moved higher in August as more model year 2026 vehicles hit dealer lots and automakers work to offset higher costs. According to estimates from Kelley Blue Book, price increases accelerated in August as both key measures – average transaction price (ATP) and manufacturer’s suggested retail prices (MSRPs) – increased month over month and year over year. Despite higher prices, retail sales in August climbed by 2.5% versus year-ago levels.
“While new-vehicle prices continue their upward trajectory, the pace of change remains relatively measured, more a gradual correction than a seismic shift. Costs are clearly increasing, for automakers, dealers and buyers alike. This month’s increase aligns with our expectations, reflecting a market that’s adjusting to new production realities and consumer preferences without tipping into volatility.”
“The one constant in the automotive business is that fresh product sells well. While Tesla’s Model Y update has slowed the company’s sales decline, it’s not getting easier for the EV pioneer because the market is now flooded with all-new, fresh EVs from mainstream competitors — consumers have more choice than ever. The current surge in EV sales is being driven by product innovation, motivated dealers, and an urgency ahead of the IRA tax credit phase-out.”
The Cox Automotive Economic and Industry Insights team is closely monitoring tariff developments and regularly publishing insightful commentary and analysis as appropriate.
