Kelley Blue Guide Report: New-Automobile Costs Maintain Regular in Might, As Automakers and Sellers Work To Offset Tariff-Pushed Value Will increase

• New-vehicle ATP held regular in Might at $48,799just about unchanged from the revised April ATP of $48,811. In comparison with Might 2024new-vehicle transaction costs have been increased by 1.0%.
• The brand new-vehicle gross sales tempo slowed notably in Might, falling to fifteen.6 million from a tempo of 17.3 million in April. Total, new-vehicle incentives elevated barely final month from 6.7% of ATP in April to six.8% in Might ($3,297). Incentives final month have been additionally principally unchanged from Might 2024. A 12 months in the past, incentive packages averaged 6.7% of ATP.
• A majority of automakers decreased incentive spending final month. Volkswagen, Mazda, Land Rover, Volvo and BMW all decreased incentive spending by greater than 10%. Incentives have been additionally notably decrease month over month for Chrysler, Jeep and Ram. Tesla, Toyota and Nissan, conversely, elevated incentive spending considerably in Might. Even with a rise of greater than 20%, Toyota continues to spend nicely under the {industry} common on incentives, averaging roughly 4.1% of ATP in Might, up from 3.4% in April.
• The common producer’s advised retail worth (MSRP) for a brand new car in Might was $50,968a rise from $50,774 in April and the best level in 2025. The brand new-vehicle common MSRP in Might was 2.1% increased 12 months over 12 months; the long-term common enhance is 3.5%. The common new-vehicle MSRP peaked in December 2024 at $51,990.
• Transaction costs held regular month over month for lots of the hottest, best-selling automobiles. Transaction costs and incentive ranges have been principally unchanged within the Compact SUV and Mid-size SUV segments – the 2 largest segments. In Might, the typical worth paid for a Compact SUV – the best-selling section within the U.S. – was $36,515. Incentive spending within the Compact SUV section elevated to eight.0% of ATP in Might from 7.9% in April.
• Sports activities Automobiles, Luxurious Automobiles and Luxurious Subcompact SUVs noticed costs climb essentially the most month over month in Might. Common Small/Mid-Dimension Pickup Vans additionally posted increased costs month over month in Might, growing 0.9% to $42,062; incentives ticked barely decrease, from 6.0% of ATP in April to five.9% in Might.

Quote from Erin Keating, Govt Analyst, Cox Automotive
“Whereas tariff coverage is including uncertainty to the new-vehicle market, costs are holding remarkably regular, a reminder that auto {industry} change is usually sluggish. Many automakers are maintaining true to a promise to carry the road on pricing, a minimum of within the close to time period. We’re nonetheless anticipating costs to maneuver increased by way of the summer time, because the inflationary impression of tariffs begins to hit. Proper now, we consider supplier profitability is being squeezed, as prices on many merchandise are going up, however elevating retail costs on this setting is an actual problem.”

As Tesla Costs Decline and Incentives Enhance, Electrical Automobile Affordability Improves

• The Kelley Blue Guide group’s preliminary estimate of recent electrical car ATP in Might is $57,734down from a revised $59,123 in April. New EV costs in Might have been decrease 12 months over 12 months by 1.1%.
• EV incentives jumped increased in Might, with the typical incentive package deal growing from 11.6% of ATP in April to 14.2% of ATP ($8,225)greater than twice the extent of industry-wide incentives and up from 12.0% a 12 months earlier. In Might, EV incentives have been on the highest degree within the trendy period of EV gross sales. (Cox Automotive considers the fashionable EV period to have begun in 2018, when EV gross sales achieved greater than 1% of whole market share.)
• Tesla common transaction costs declined in Might, falling 1.5% to $55,277. Tesla costs in Might have been decrease 12 months over 12 months by 2.8%. Mannequin 3 and Cybertruck costs elevated modestly – lower than 1% – month over month in Might, whereas all different Tesla merchandise confirmed a month-over-month decline. Tesla’s best-selling product, the Mannequin Y, had a median transaction worth in Might that was 2.9% decrease than in April, at $53,895. The Mannequin Y can be the best-selling EV within the U.S.

Knowledge tables can be found for obtain.