---
title: "KBB: New Vehicle Prices Continue To Fall"
description: Kelley Blue Book reports that New-Vehicle transaction prices were down 3.5% year over year in January.
---

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# [KBB: New Vehicle Prices Continue To Fall](https://www.carpro.com/blog/new-vehicle-prices-continue-to-fall)

 Written by [CarPro](https://www.carpro.com/blog/author/carpro) | Feb 22, 2024 7:18:32 PM

A recent[ iSeeCars study ](https://www.carpro.com/blog/the-vehicles-priced-the-highest-and-lowest-from-msrp)indicated new vehicle MSRPs are continuing to drop.  A dip in new vehicle pricing is mirrored in the latest research shared by [Kelley Blue Book (KBB).](https://mediaroom.kbb.com/2024-02-13-Kelley-Blue-Book-Reports-New-Vehicle-Transaction-Prices-Continue-to-Tumble,-Down-3-5-Year-Over-Year-in-January)

### U.S. New Vehicle Prices Continue to Fall

Here are some key takeaways from KBB's latest research:

- KBB reports that New-Vehicle Transaction Prices continue to fall, down 3.5% year over year in January. They were also lower 2.6% month over month. KBB also says price declines in January accelerated compared to December.
- In more good news for car shoppers, incentives were up in January for a third straight month as the sale pace slowed.  In the past year, KBB says incentive packages have risen from 2.8% of the average transaction price to 5.7%.
- Electric vehicle pricing has been a hot topic in recent months with automakers reducing prices on EVs due to slowing demand.  KBB's data shows that EV prices were down 10.8% year over year, led by strong incentive packages in January.  Prices were down 21.4% for the Tesla Model Y - the EV volume leader - from January 2023.

###### Read full details in the [KBB press release.](https://mediaroom.kbb.com/2024-02-13-Kelley-Blue-Book-Reports-New-Vehicle-Transaction-Prices-Continue-to-Tumble,-Down-3-5-Year-Over-Year-in-January)

Source:[ Kelly Blue Book media release.](https://mediaroom.kbb.com/2024-02-13-Kelley-Blue-Book-Reports-New-Vehicle-Transaction-Prices-Continue-to-Tumble,-Down-3-5-Year-Over-Year-in-January)

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