Consumers face higher costs as average new vehicle prices continue to increase across the U.S. auto market.

New Vehicle Prices Tick Up in June

New Car Prices Climb. According to Kelley Blue Book, a Cox Automotive brand, the average transaction price (ATP) for new vehicles rose slightly in June to $48,907, a 0.4% increase from May’s revised ATP of $48,717. Compared to last year, prices increased 1.2%, marking the largest year-over-year gain in 2025 so far, though still well below the 10-year average rise of 3.9%.

Sales Slow While Inventory Builds

June’s seasonally adjusted annual rate (SAAR) for new-vehicle sales was 15.3 million, slightly down from 15.6 million in May. This reflects a slowdown from the spring surge, where April’s SAAR reached 17.3 million, and March hit 17.8 million. Meanwhile, inventory levels climbed to 82 days’ supply, up from 72 in May.

Incentives Rise Modestly with Slower Sales

As sales slowed, sales incentives crept up slightly. Discounts rose to 6.9% of ATP in June, up 0.1 percentage points from May and higher than last year’s average of 6.5%. These small increases are typical in a cooling market, as manufacturers look to boost demand.

MSRP Hits Second-Highest on Record

New Car Prices Climb. June marked the third consecutive month of rising manufacturers’ suggested retail prices (MSRPs), with an average of $51,124, just behind the December 2024 record of $51,990. Compared to June 2024, this represents a 2.3% year-over-year increase in MSRP, indicating that vehicle production costs are rising more rapidly than transaction prices.