Americans Paying More for New Vehicles, Partly Because of Full-Size Pickups

Tariffs also played a role as the average price of a new car sold rose 3.4 percent from a year ago.

Ford and Lincoln vehicles for sale at a dealership in Glendale, Calif., on Aug. 21, 2024. Mario Tama/Getty Images

American car buyers paid 3.4 percent more for new vehicles last month compared with last year, partly because buyers are choosing more high-end vehicles, Kelley Blue Book revealed in a report March 11.

“That’s a more significant increase than we’re used to seeing,” Sean Tucker at Kelley Blue Book said.

Over the past three years, the price of new cars has climbed nearly 1 percent on average every month, the auto industry research company reported.

The higher average price—hitting $51,440 for a new car in February—was attributed to a combination of high tariffs, manufacturers canceling inexpensive models, and U.S. buyers choosing more luxurious cars, Kelley Blue Book concluded.

Midsize SUVs were still America’s best-selling vehicles last month, selling at an average price of $50,148.

Coming in second were compact SUVs, which sold for an average of $36,807, according to the report.

Full-size trucks sold for $66,157, also impacting the final average price.

“Remove expensive full-size pickups, and the average is closer to $39,000, which tells a very different affordability story,” said Erin Keating, executive analyst for Kelly Blue Book’s parent company Cox Automotive.

EV Prices Dropping

The average price of electric vehicles (EVs) is headed in the opposite direction, hitting $55,300—1.4 percent lower than a year ago—as demand for the once-hot market started to diminish last year.

The loss of the federal $7,500 tax credit in September 2025 forced a price drop for nearly all models, except Teslas, and prompted some manufacturers to discontinue producing EVs in the United States.

The average EV buyer received a 14.2 percent discount from the sticker price, according to Kelley Blue Book.

This year, new EV sales dipped, but demand for used models strengthened.

A Tesla Model Y is displayed at the AI+Expo Special Competitive Studies Project in Washington on June 2, 2025. Outside China, EV demand was uneven—rising where subsidies and rules spurred buyers and falling where they did not. Madalina Vasiliu/The Epoch Times

In January, the number of new EVs sold was down nearly 30 percent from a year earlier and down 20.4 percent from December, according to Cox Automotive. The EV share of total new-vehicle units sold was 6 percent.

In the used EV market, however, units sold rose 21.2 percent in January compared with the year before, and nearly 21 percent from December, Cox Automotive reported.

Vehicle Sales Expected to Rise

Overall, February auto sales in the United States are expected to rebound from a slow January, reaching about 1.19 million units, but new vehicle sales should remain moderate, according to S&P Global Mobility.

“We expect that auto sales in February should thaw somewhat from the chilly January 2026 result but remain modest, with volume for the month below the year-go period,” said Chris Hopson, manager of North American light vehicle sales forecasting for S&P Global. Mobility.

The projected 6-percent increase from January’s sales would be one of the smallest growth rates of the past decade. Hopson attributed the slower growth to affordability issues faced by consumers.