New Car Prices Drop Slightly, Incentives Increase: Report

EV prices dropped on a yearly basis for the 11th consecutive month in May.

Ford cars at a dealership in Austin, Texas. Brandon Bell/Getty Images

The average transaction price (ATP) for new vehicles registered a 0.5 percent decline in May from the previous month, with incentive spending by sellers, for attracting buyers, rising during this period.

In May, the new vehicle ATP was $49,220, down from $49,456 in April, according to a June 10 statement from vehicle valuation company Kelley Blue Book (KBB). On a year-to-year basis, ATP prices were up by a modest 1.2 percent in May. Some of the affordable segments of the market posted sizable year-to-year gains, such as compact SUVs rising by 3.4 percent and subcompact SUVs by 4.2 percent, with the ATPs of both at “all-time highs.”