New-Vehicle Prices Hold Steady in May as Incentives Tick Up
U.S. new-vehicle transaction prices edged lower in May but increased by 1.2% year over year — the smallest annual gain of 2026 — while incentive spending climbed, according to the latest report from Kelley Blue Book (div. Cox Automotive).
The ATP for a new vehicle came in at $49,220, down 0.5% from April’s revised $49,456. Incentive spending rose to 7.1% of ATP, up from 6.8% a year earlier. EVs, premium and compact cars and full-size pickups drew the heaviest discounts.
In a release, Cox analyst Erin Keating notes midsize SUVs led all segments in sales volume for the fourth consecutive month, with the top five segments accounting for 64.2% of all sales.
“Average transaction prices are rising 2–4% year over year across key vehicle segments, powered by a convergence of product cycles and supply dynamics,” Keating writes. “Redesigned SUVs from Toyota, Kia, Jeep and Hyundai are commanding higher prices out of the gate, while Ford’s F-Series production constraints are tightening truck inventory, lifting average transaction prices, with [a] freshened Ram pickup stepping in to capture buyers at the premium end.”
