New-vehicle prices increased modestly in June, according to data recently released by Kelley Blue Book. The average transaction price (ATP) for a new vehicle purchased last month increased less than 1% year over year to $49,758, as KBB says buyers continued to migrate to a mix of more affordable vehicles. Vehicle sales in June were healthy, with the seasonally adjusted average rate (SAAR) at 16.5 million, the highest point in 2026. Sales volume, according to KBB estimates, was higher by 7.6% year over year.
By segment, sales of subcompact SUVs – with an average transaction price of $31,113 in June – jumped more than 23% year over year, which researchers say helped hold down the industry-wide, sales-weighted ATP. Small/medium pickup truck sales increased 12.3%. More expensive, full-size pickup sales increased only 2.5% year over year, below the industry average. KBB says while individual product and segment prices climbed, buyers generally gravitated toward lower-priced segments in June.
- Industry ATP: Kelley Blue Book cites the ATP for a new vehicle in June as $49,758, an increase of 0.6% year over year and higher by 0.4% from the upwardly revised May ATP. Researchers say prices have been holding steady below $50,000 throughout 2026, after peaking in December 2025 at $50,609. KBB says prices commonly peak in December, when a high mix of luxury vehicles are sold.
- Industry MSRP: In June, the new-vehicle manufacturer's suggested retail price (MSRP) – commonly called "the asking price" – was $51,654, mostly unchanged from the revised lower May MSRP of $51,366. Year-over-year MSRP growth moderated 0.9% in May. The long-term average annual MSRP increase is 3.4%, suggesting price inflation in the auto market remains well below average.
- Incentives: Incentive spending in June was 7% of ATP, up from 6.9% in June 2025 and down from 7.1% in May. KBB says over the past 13 months, incentive spending has averaged 7% of ATP which KBB suggests a real discipline by automakers focused on bottom-line profitability. Incentives remain elevated for full-size pickups and luxury vehicles.
- Segments: Among the five best-selling vehicle segments in June, annual ATP gains in June remained well above the industry average of 0.6% and closer to long-term average annual gains. By volume, the top five segments accounted for 63% of total industry sales, a slight increase from June 2025. Transaction prices in the largest segments were:
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Midsize SUV: $49,792, up 2.2% year over year
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Compact SUV: $37,707, up 3.7% year over year
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Full-size pickup truck: $66,427, up 2.1% year over year
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Subcompact SUV: $31,133, up 2.3% year over year
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Compact car: $27,978, up 2.4 % year over year
"One of the biggest shifts in today's market is that consumers are no longer waiting for uncertainty to disappear," said Erin Keating, Executive Analyst, Cox Automotive. "After several years of inflation, high interest rates, and policy volatility, many buyers have come to view uncertainty as the new normal. If they need a vehicle, they're moving forward and adjusting their budget and vehicle choice accordingly. The strength of midsize SUVs, with sales up more than 16% year over year, shows that consumers are gravitating toward the center of the market where value, utility, and affordability intersect. In 2026, 'mid' is in."
Electric Vehicle Prices Continue to Decline on an Annual Basis
- Electric Vehicle ATP: KBB says EV prices declined year over year in June for the sixth consecutive month. The average price paid for a new EV was $56,238, down 4.5% from a year earlier but higher compared to May. Initial estimates suggest EV sales declined month over month in June, after a strong May performance.
- EV Incentives: According to KBB data, electric-vehicle incentives remain elevated, despite declining month over month in June. Incentives as a percent of ATP were 13% in June, up from 13.3% in June 2025 but down from 14% in May. EV incentives in June were well above the industry average of 7%.
- Tesla ATPs: Tesla prices increased slightly in June to $53,107, according to KBB, but were lower year over year by 2.1%, the smallest annual decline in 2026. Model 3 prices increased moderately year over year while Model Y prices were lower by 2.7%, at $51,775. Model Y sales account for more than 35% of all electric vehicle sales.
Check out Car Pro Show host Jerry Reynolds' recent interview about new-vehicle prices with Fox 26 Houston:
Photo: Wellnhofer Designs/Shutterstock.com.
