Average New Vehicle Prices Dropped Slightly In October

New-vehicle average transaction prices (ATP) fell a bit in October, according to Kelley Blue Book estimates. A .4% dip in prices follows a record high set in September and was mostly expected, as sales of expensive electric vehicles (EVs) fell sharply month over month, as government-backed sales incentives expired at the end of September. Read more about the September EV sales results here. Incentives dropped in October as well.  While overall new-vehicle ATPs dipped month over month, KBB says they were higher than a year ago.  Especially when it comes to Cadillac, up more than 22% year over year.

KBB shares these additional stats:

• In October, KBB says the new-vehicle ATP was $49,766, fell as expected from the all-time high in September. The ATP last month was lower by 0.4% compared to September but higher year over year by 2.1%, slightly below the long-term average ATP increase.
• The average new-vehicle manufacturer's suggested retail price (MSRP) – commonly called "the asking price" – also declined in October, as fewer higher-priced EVs were sold last month. The new-vehicle MSRP was $51,841, down from the record set in September, but up by 2.6% year over year.
• Incentive spending declined in October. The average incentive package last month was equal to 6.5% of ATP, a decrease of 11.4% compared to September, when incentive spending equaled 7.3% of ATP. A year ago, the average incentive package was equal to 7.6% of ATP.
• Full-size pickup trucks, a volume-leading segment in the U.S. market, behind only the compact and mid-size SUV segments, saw average transaction prices hit a record high in October, at $66,462. Incentives, at 8.4% of ATP, were higher month over month but lower than the peaks for 2025 seen in June and July. The average MSRP for a full-size pickup sold last month was $70,351.

Biggest and Smallest Price Gains This Year: Brands

KBB says that among major volume brands, Cadillac and Porsche have seen some of the biggest price gains in the past year. Cadillac, a brand focused on a robust EV strategy and selling a strong mix of high-end Escalades, has seen ATPs jump more than 22% year over year. At Porsche, a heavy importer facing steep tariff costs, ATPs in October were up more than 13%. Lincoln and Chevrolet also saw annual prices increase well above the industry average, while Acura, Jeep and Tesla saw ATPs notably lower versus year-ago levels.

EV Sales Plunge in October as Prices Edge Higher

KBB data shows that EV sales fell sharply in October to 74,835, a decline of 48.9% month over month, according to Cox Automotive's initial estimates. Year over year, EV sales in October dropped 30.3%.

“We expected this shift in the electric vehicle market," said Stephanie Valdez Streaty, Senior Analyst Cox Automotive. "With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October's EV ATP to a 2025 high of $59,125 — now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market."

KBB's EV stats include:

• In October, the new EV ATPs were up 1.6% month over month, climbing to $59,125. New EV prices in October were higher year over year by 2.3%.
• Market leader Tesla's ATPs declined month over month in October, falling 1.1% to $53,526. Compared to October 2024, Tesla prices were lower by 5.5%. ATPs for the core Tesla models – the popular Model 3 and Model Y – both declined month over month in October. Sales also declined, as the entire EV segment contracted. Tesla sales in October fell 35.3% from September and 23.6% from year-ago levels, declines smaller than the overall EV segment.

KBB data tables are available for download here.

Photo: Jeep Brand's new-vehicle average transaction price (ATP) dropped 3.8% in October vs September. Credit: CarPro.