Kelley Blue E-book Report: New-vehicle prices rise in June, outpacing transaction costs as gross sales sluggish, incentives tick up

The price of a brand new car climbed larger in June, in accordance with knowledge launched as we speak by Kelley Blue E-book, a Cox Automotive model, however the common transaction worth (ATP) enhance was comparatively gentle and under the long-term common. New-vehicle gross sales incentives held largely regular final month, growing solely modestly from Might. The gross sales tempo in June was little modified from the earlier month, and stock climbed larger. Key takeaways from the Kelley Blue E-book June ATP report embrace:

• New-vehicle ATP in June was $48,907larger by 0.4% from the downwardly revised Might ATP of $48,717. ATPs in June had been larger 12 months over 12 months by 1.2%, the biggest year-over-year acquire in 2025, however properly under the 10-year common enhance of three.9%.
• The brand new-vehicle gross sales tempo in June was marginally decrease month over month at 15.3 million on a seasonally adjusted foundation, down from 15.6 million in Might, because the market cooled from its spring surge. The seasonally adjusted annual price (SAAR) of gross sales in April was 17.3 million, down from 17.8 million in March.
• With the gross sales tempo slowing, stock ranges in June elevated to 82, as measured in days’ provide by Cox Automotive, up from 72 in Might. As gross sales reasonable, incentives usually enhance. And certainly, reductions final month elevated modestly, climbing to six.9% of ATP, larger by 0.1 proportion factors from Might. A 12 months in the past, incentive spending averaged 6.5% of ATP.
• Importantly, new-vehicle producer’s instructed retail costs (MSRPs) moved larger in June for the third straight month. The common MSRP in June was $51,124the second-highest on file, surpassed solely by December 2024 ($51,990). MSRPs usually peak in December when a excessive mixture of luxurious autos is bought. Yr over 12 months, the June MSRP was larger by 2.3%, properly above the ATP enhance of 1.2%, suggesting that product prices are rising extra shortly than transaction costs.
• Finish of an period: In June, the typical transaction worth paid for a Mitsubishi Mirage sedan was $18,484. There have been nearly no incentives on the Mirage final month, and it was the final remaining new car transacting for lower than $20,000. The car has been discontinued and, with no new fashions arriving, the accessible stock is disappearing. Based on vAuto Dwell Market View, a Cox Automotive database, fewer than 1,700 Mirages can be found throughout the U.S. On the present gross sales tempo, the ultimate sub-$20,000 car will go extinct by the tip of the summer season.

Quote from Erin Keating, Government Analyst, Cox Automotive

“The months forward are shaping as much as be ‘the large squeeze,’ as the true headline this summer season would be the rising disconnect between rising prices for automakers and sellers and comparatively flat client costs. As common MSRPs proceed to climb, the modest enhance in transaction costs suggests the companies are absorbing extra of the burden and never passing the added prices to customers—one thing that may affect profitability if the pattern persists.”

Electrical car incentives climb larger as gross sales sluggish, costs reasonable

• The Kelley Blue E-book workforce’s preliminary ATP estimate for a brand new electrical car in June was $56,910down from the revised-lower ATP of $57,236 in Might. Yr over 12 months, new EV costs in June had been decrease by 2.8%.
• EV incentives moved larger for the second consecutive month and reached a brand new file of 14.8% of ATP, or greater than $8,400. EV gross sales in Q2 had been larger than Q1, however decrease 12 months over 12 months by greater than 6%, as market chief Tesla’s gross sales proceed to tumble. By the primary half of 2025, Tesla gross sales are down greater than 10%. Ford and Kia even have notably decrease EV gross sales 12 months over 12 months. For a full report, see the Kelley Blue E-book EV gross sales report.
• With gross sales of market chief Tesla slowing, common transaction costs have decreased. In June, Tesla’s ATP was $54,989down from Might’s ATP of $55,276 and decrease by 5.7% 12 months over 12 months. The brand new Mannequin Y, the best-selling EV within the U.S., noticed its ATP decline modestly to $53,224 in June from $53,898 in Might. In June, Tesla bought 25,095 Mannequin Ys, its finest month up to now in 2025.

SOURCE: Kelley Blue E-book