The average transaction price (ATP) of a new vehicle sold in the United States was $49,077 in August, Kelley Blue Book (div. Cox Automotive) reports, an increase of 0.5% from the prior month and 2.6% more than in August 2024.

Analysts blame deliveries of 2026-MY vehicles and accelerating EV sales for the largest ATP spike in more than two years. Cadillac led all marques with a 13.4% YOY increase while Volkswagen Group’s 11.1% gain was the highest among manufacturers.

Incentive spending averaged 7.2% of ATP, down a scant 0.1% from July and flat from a year ago.

“While new-vehicle prices continue their upward trajectory, the pace of change remains relatively measured, more a gradual correction than a seismic shift,” writes Cox Automotive Executive Analyst Erin Keating in a release. “Costs are clearly increasing, for automakers, dealers and buyers alike. This month’s increase aligns with our expectations, reflecting a market that’s adjusting to new production realities and consumer preferences without tipping into volatility.”

KBB data shows dealership sales improved by 2.5% in August. Last week, Hyundai Motor North America CEO Randy Parker credited hybrid and EV models with helping U.S. Hyundai and Genesis dealers set new one-month sales records.

Read more at Kelley Blue Book