The average transaction price for a new vehicle reached $49,275 in March, marking a 3.5% increase compared to the same month last year, according to Kelley Blue Book (KBB). This represents an acceleration in the rate of price growth, which has risen steadily from 1.9% in January to 3.4% in February and now 3.5% in March.
While prices have dipped slightly from the record highs above $50,000 seen in September and December of last year, the year-over-year comparisons tell a story of accelerating inflation for car buyers. The data shows a sharp contrast to the minimal 0.5% year-over-year increase recorded between December 2024 and December 2025.
A breakdown by vehicle segment reveals significant variation. Full-size pickup trucks commanded the highest average price at $65,964, while compact cars were the most affordable at $27,469. Midsize SUVs, a top-selling category, averaged $49,853.
Interestingly, electric vehicle (EV) prices have been declining, with a 2.8% year-over-year drop in March marking the third consecutive month of decreases. However, with an average price of $54,508, EVs remain notably more expensive than the overall market average.
Industry analysts note that despite high fuel prices, consumer preference continues to lean toward larger vehicles, with little shift in buying behavior observed in recent sales data.