New Vehicle Prices Continue to Drop for 11th Straight Month Giving Consumers a Huge Win

Incentive spending in August reached 7.2% of ATP, up from 7.0% in July and well above last year’s 4.8%.Photo bySwansway Motor GrouponUnsplash

For the 11th consecutive month, the average transaction price (ATP) for new vehicles in the U.S. has declined year-over-year, according to Kelley Blue Book data. In August, the ATP stood at $47,870, down 0.6% from July’s revised figure of $48,166. Increased vehicle inventories are driving the price drops, benefiting consumers with more options and higher incentives.

Incentive spending in August reached 7.2% of ATP, up from 7.0% in July and well above last year’s 4.8%. Brands like Chrysler, Ram, and Jeep raised incentives, while luxury brands like Porsche and Land Rover maintained some of the lowest discounts.

“The shift to a buyer’s market is good news for consumers but impacts dealer profitability,” said Cox Automotive Executive Analyst Erin Keating. Despite higher inventories and incentives, challenges remain as tight credit conditions squeeze dealer margins.

Incentives were highest for electric vehicles (EVs), averaging 13.3% of ATP, reflecting the growing competition in the EV market. Tesla’s Model Y ATP rose to $52,482, continuing its dominance as the best-selling EV in America. Meanwhile, Tesla’s Cybertruck sales surged, with an ATP of $112,241, making it the best-selling vehicle priced over $100,000.