The average price paid for a new vehicle in the U.S. climbed back above $50,000 in August, according to Kelley Blue Book's monthly report released Sept. 10. Buyers paid an average of $50,089, up 0.5% from July and 1.9% from August 2025. It was the first month of 2026 above the $50,000 mark; the all-time high remains $50,612, set in December 2025.
Sticker prices rose a little faster than transaction prices. The average manufacturer's suggested retail price reached $51,852, up 2.2% from a year earlier, and KBB notes the average MSRP has stayed above $50,000 since April 2025.
Cheaper segments are rising fastest
Prices rose in each of the five best-selling segments, which together made up about 65.1% of August sales. KBB says the most affordable segments rose more than the industry average, pushing the overall figure higher.
Average transaction price, top five segments (August 2026)
| Segment | Average transaction price | Change vs. August 2025 |
|---|---|---|
| Midsize SUV | $50,315 | +1.6% |
| Compact SUV | $37,722 | +1.1% |
| Full-size pickup | $67,446 | +2.1% |
| Subcompact SUV | $31,149 | +2.2% |
| Compact car | $27,997 | +2.9% |
Source: Kelley Blue Book. Segments listed in order of August sales volume.
The midsize SUV segment has overtaken compact SUVs as the best-selling category in 2026. KBB points to two likely reasons: inventory constraints on the Toyota RAV4 and the discontinuation of the Ford Escape, both major players in the lower-priced compact SUV class.
"New-vehicle price inflation is real, but automotive price increases have been moderate in recent years and remain below the long-term average of roughly 3%. At the same time, many American households are under significant financial pressure, which is steering more shoppers toward lower price points." — Erin Keating, executive analyst, Cox Automotive
Smaller discounts
Incentives averaged 6.5% of the transaction price in August, down from 6.6% in July and 7.2% a year earlier. In Cox Automotive's third-quarter Dealer Sentiment Index, dealers said they felt less pressure to lower prices because new-vehicle inventory remains at manageable levels. KBB also notes that prices typically rise through the second half of the year as next-model-year vehicles reach dealerships.
EVs keep getting cheaper
Electric vehicles moved the other way. The average EV sold for $54,813 in August, down 1.2% from July and 2.7% from a year earlier. The premium for an EV over the average gas-powered vehicle shrank to 9.4%, from more than 16% in August 2025. EV incentives averaged 12% of the transaction price, down from 14.6% a year ago but still nearly double the industry average. Tesla's average transaction price fell 3.4% year over year to $52,616.
For shoppers, the takeaway is that the biggest deals are now concentrated in EVs, while the affordable gas and hybrid models most buyers want are seeing the steepest price gains and thinner discounts. Comparing out-the-door prices across several dealers, and across competing models in the same segment, matters more than it did a year ago.