ATLANTA, Mar. 10, 2026 – According to estimates released today by Kelley Blue Book, a Cox Automotive brand, new-vehicle price growth accelerated in February as market sales recovered from a slow January. New-vehicle prices increased modestly from January but jumped notably higher year over year. Sales incentives also increased month over month but were mostly flat compared to year-earlier levels.
New-Vehicle Average Transaction Price
- Industry ATP: The February average transaction price (ATP) for a new vehicle according to Kelley Blue Book was $49,353, up 3.4% from one year earlier. Over the past three years, the average annual ATP increase has been 0.9%, indicating February’s gain was well above the near-term average. Compared to January, prices last month were higher by 0.3%, an increase slightly above recent averages.
- Industry MSRP: For the 11th consecutive month, the average new-vehicle manufacturer’s suggested retail price (MSRP) – commonly called “the sticker price” – was above $50,000. At $51,440, the MSRP in February was higher year over year by 3.5%, slightly above the long-term average annual gain.
- Incentives: Automakers increased incentives in February. The average incentive package last month was equal to 6.9% of ATP, up from 6.5% in January. A year ago, the average incentive package was equal to 7.0% of ATP. Last month, sales incentives were strongest for luxury vehicles and compact SUVs, while high-performance cars and full-size SUVs were among the lowest incentives.
- Segments: In February, among the best-selling segments, ATP increases were mostly near-or-below industry average. For the best-selling midsize SUV segment, ATPs increased year over year by 3.5%, to $50,148. The ATP for the compact SUV segment (No. 2 in sales) was higher by 1.6% year over year at $36,807. Full-size pickup truck ATPs, at $66,157, increased by 2.9%. Subcompact SUVs ($30,836) and compact car ($27,341) rounded out the Top 5 best-selling segments.
Industry Average Transaction Price Versus Industry Average Incentive Spend as % of ATP
Quote from Erin Keating, Executive Analyst, Cox Automotive
“A 3.4% ATP increase in February stands out, but it’s not out of character when you put it in context. Outside of the ‘everything was broken’ phase, when prices were rising at a 13% clip, the industry’s long‑run average is closer to 3%. What we’re seeing now looks more like normalization than a new pricing problem.
It’s also important to note that not every vehicle is a $50,000 purchase. Most of the volume still sits in segments priced below the industry average. The top five segments come in at around $44,000 on a weighted basis, and pickups account for a big share of that. Remove expensive full-size pickups, and the average is closer to $39,000, which tells a very different affordability story.”
Electric Vehicle Prices Moderate, Gap to ICE+ Shrinks
- EV ATP: In February, the new electric vehicle (EV) ATP was $55,300, lower by 1.4% year over year. Compared to January, the new EV ATP in February was lower by 0.6%. With the ICE+ ATP increasing in February and EV prices declining, the spread between EV and ICE+ – at roughly $6,500 – was one of the lowest on record.
- EV Incentives: Automakers stepped up EV sales incentives in February, with the average incentive package increasing from 12.4% to 14.2% of ATP. EV incentives in February were more than double the industry-wide incentives, an indication that automaker and dealers continue to lean on high incentives to sell EVs.
- Tesla ATPs: Tesla, the leading EV automaker, saw ATPs increase in February to $53,821, an increase of 3.0% year over year. Tesla sales fell to 38,500 in February, according to Kelley Blue Book estimates, down 8.9% year over year. February was the lowest sales month for Tesla since late 2021. Still, Tesla’s sales outperformed the broader EV segment, which saw sales down approximately 26% year over year.
