New-vehicle prices increased modestly in June, according to data released today by Kelley Blue Book, a Cox Automotive brand. The average transaction price (ATP) for a new vehicle purchased in June increased less than 1% year over year to $49,758, as buyers continued to migrate to a mix of more affordable vehicles. Vehicle sales in June were healthy, with the seasonally adjusted average rate (SAAR) at 16.5 million, the highest point in 2026. Sales volume, according to Kelley Blue Book estimates, was higher by 7.6% year over year.
Sales of subcompact SUVs – ATP of $31,113 in June – increased by more than 23% year over year, helping hold down the industry-wide, sales-weighted ATP. Small/medium pickup truck sales jumped by 12.3%, while more expensive, full-size pickup sales increased only 2.5% year over year, below the industry average. While individual product and segment prices climbed, buyers generally gravitated toward lower-priced segments in June.
New-Vehicle Average Transaction Price
- Industry ATP: According to Kelley Blue Book, the ATP for a new vehicle in June was $49,758, an increase of 0.6% year over year and higher by 0.4% from the upwardly revised May ATP. Prices have been holding steady below $50,000 throughout 2026, after peaking in December 2025 at $50,609. Prices commonly peak in December, when a high mix of luxury vehicles are sold.
- Industry MSRP: In June, the new-vehicle manufacturer’s suggested retail price (MSRP) – commonly called “the asking price” – was $51,654, mostly unchanged from the revised lower May MSRP of $51,366. Year-over-year MSRP growth moderated 0.9% in May. The long-term average annual MSRP increase is 3.4%, suggesting price inflation in the auto market remains well below average.
- Incentives: Incentive spending in June was 7% of ATP, up from 6.9% in June 2025 and down from 7.1% in May. Incentive spending has averaged 7% of ATP over the past 13 months, suggesting real discipline by automakers focused on bottom-line profitability. Incentives remain elevated for full-size pickups and luxury vehicles.
- Segments: Among the five best-selling vehicle segments in June, annual ATP gains in June remained well above the industry average of 0.6% and closer to long-term average annual gains. By volume, the top five segments accounted for 63% of total industry sales, a slight increase from June 2025. Transaction prices in the largest segments were:
- Midsize SUV: $49,792, up 2.2% year over year
- Compact SUV: $37,707, up 3.7% year over year
- Full-size pickup truck: $66,427, up 2.1% year over year
- Subcompact SUV: $31,133, up 2.3% year over year
- Compact car: $27,978, up 2.4 % year over year
Industry Average Transaction Price Versus Industry Average Incentive Spend as % of ATP
Quote from Erin Keating, Executive Analyst, Cox Automotive
“One of the biggest shifts in today’s market is that consumers are no longer waiting for uncertainty to disappear. After several years of inflation, high interest rates, and policy volatility, many buyers have come to view uncertainty as the new normal. If they need a vehicle, they’re moving forward and adjusting their budget and vehicle choice accordingly. The strength of midsize SUVs, with sales up more than 16% year over year, shows that consumers are gravitating toward the center of the market where value, utility, and affordability intersect. In 2026, ‘mid’ is in.”
Electric Vehicle Prices Continue to Decline on an Annual Basis
- Electric Vehicle ATP: EV prices declined year over year in June for the sixth consecutive month. The average price paid for a new EV was $56,238, down 4.5% from a year earlier but higher compared to May. Initial estimates suggest EV sales declined month over month in June, after a strong May performance.
- EV Incentives: Electric-vehicle incentives remain elevated, despite declining month over month in June. Incentives as a percent of ATP were 13% in June, up from 13.3% in June 2025 but down from 14% in May. EV incentives in June were well above the industry average of 7%.
- Tesla ATPs: Tesla prices increased slightly in June to $53,107 but were lower year over year by 2.1%, the smallest annual decline in 2026. Model 3 prices increased moderately year over year while Model Y prices were lower by 2.7%, at $51,775. Model Y sales account for more than 35% of all electric vehicle sales.
About Kelley Blue Book
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry for nearly a century. As the industry standard for generations, Kelley Blue Book provides transparent, objective information and data-driven, innovative tools for consumers, automotive dealers and manufacturers. Kelley Blue Book publishes millions of market-reflective values weekly on its top-rated website KBB.com, from its famous Blue Book® Trade-In Values to the Kelley Blue Book® Price Advisor tool, which offers a range for what consumers reasonably can expect to pay for a vehicle in their area. KBB.com editors rate and review hundreds of new vehicles each year to help consumers understand the Best Cars and Best SUVs to meet their needs. Kelley Blue BookSM Instant Cash Offer provides a redeemable trade-in offer to transaction-ready consumers and conveniently connects them to local participating dealers. Kelley Blue Book’s Service Advisor provides guidance on how much to pay for service and repairs, allowing consumers to schedule service with local dealers on KBB.com. Kelley Blue Book also provides vehicle values to finance and insurance companies as well as governmental agencies. Kelley Blue Book is a Cox Automotive brand.
