KBB: Average New Car Price Up 3.4% to $49,353 in February
The average transaction price for a new vehicle sold by a U.S. dealer last month was $49,353, a 3.4% increase from February 2025, according to Kelley Blue Book (div. Cox Automotive), outpacing the three-year average annual increase of 0.9%.
Factories raised the average sticker price to $51,440 in February, up 3.5% year-over-year. They were more generous with incentives, which accounted for 6.9% of ATP — down from 7% in February 2025 but up from 6.5% in January.
“A 3.4% ATP increase in February stands out, but it’s not out of character when you put it in context,” writes Cox Automotive Executive Analyst Erin Keating in a release, noting a great number of new cars can be had for less than $50,000. “Outside of the ‘everything was broken’ phase, when prices were rising at a 13% clip, the industry’s long‑run average is closer to 3%. What we’re seeing now looks more like normalization than a new pricing problem.”
Analysts say the cost of a new EV like the Volkswagen ID.4 increased by a more modest 1.4%, averaging $55,300 per unit, while incentives increased from 12.4% of ATP to 14.2%.
