- The average American new-car buyer paid $49,220 in May, according to Kelley Blue Book data.
- While the monthly average is slightly lower than April’s, it’s up 1.2% over May 2025.
- Affordable vehicles are still available in less popular segments.
Americans paid an average of $49,220 for a new car in May, down slightly from the revised average transaction price (ATP) of $49,456 in April, according to Kelley Blue Book data. Average transactions increased at a modest 1.2% year-over-year, slower than the typical annual rise 3.5% over a longer period.
That ATP compares with an average MSRP, or listing price, of $51,595 in May, reflecting increased incentive spending from automakers, averaging 7.1% of the transaction price. Electric vehicles (EVs), some luxury segments, compact cars, and full-size trucks saw the deepest discounts last month.
There’s also good news for EV shoppers, as electric models experienced their 11th month of ATP declines. The May average of $54,532 was 4% lower than the year before, helping drive the best sales month since the end of federal tax credits in the third quarter of 2025.
While that average transaction price might seem daunting for car shoppers, the good news is that the numbers look much more favorable in some vehicle segments. Compact cars and subcompact SUVs averaged $27,443 and $31,122, respectively. Smaller models won’t work for every buyer, but those numbers show that you don’t have to spend almost $50,000 to get a solid new car.
Annual transaction prices in the top five vehicle segments include:
- Midsize SUV: $50,185, up 2.9% year over year
- Compact SUV: $37,757, up 3.4% year over year
- Full-size pickup truck: $66,288, up 2.4% year over year
- Subcompact SUV: $31,122, up 4.2% year over year
- Compact car: $27,443, up 0.7% year over year
Transaction prices in hotter vehicle segments, including full-size trucks, compact SUVs, and midsize SUVs, came from a range of factors in May, according to Cox Automotive Executive Analyst Erin Keating.
“Average transaction prices are rising 2-4% year over year across key vehicle segments, powered by a convergence of product cycles and supply dynamics: Redesigned SUVs from Toyota, Kia, Jeep, and Hyundai are commanding higher prices out of the gate, while Ford’s F-Series production constraints are tightening truck inventory, lifting average transaction prices, with freshened Ram pickups stepping in to capture buyers at the premium end.”