Kelley Blue Book (div. Cox Automotive)’s October 2024 Average Transaction Price (ATP) report revealed that the average price of new vehicles reached a record high of $47,000, marking an increase of 5.8% year-over-year.

This rise in ATP is driven by strong demand for higher-priced vehicles, such as SUVs and trucks, which remain popular among consumers. Despite the rise in vehicle prices, buyers are still willing to pay a premium, particularly for vehicles with advanced features, better fuel economy and improved safety.

Manufacturers are also offering more incentives and rebates heading towards the end of the year, analysts noted, which have helped mitigate the impact of rising prices.

“’Tis the season for automakers to make their final push for 2024 sales,” said Cox Automotive Executive Analyst Erin Keating. “While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers. With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales.”

Read more at Cox Automotive