As if vehicle prices weren’t already on the high side, August saw increased inflation that Cox Automotive pinned to rising production costs and Americans’ appetite for large trucks.

Both the average transaction and manufacturer’s suggested retail prices for new vehicles rose over July and a year earlier as incentives fell and 2026 models arrived on dealer lots. Nonetheless, sales rose along with them by nearly 3%, fueled in part by electric-vehicle deliveries.

The ATP clocked in at $49,077, up about 3% year-over-year for the biggest jump in over two years and half a percentage point over July, Cox said. Meanwhile, the average MSRP was $51,099, up 3% year-over-year and the biggest jump so far of 2025.

Incentives didn’t help soften the inflation, being essentially flat at 7.2% of the ATP.

Most automakers raised prices in August, according to Cox, 17 of them in the 3% range.

Full-size pickups, a favorite choice among many U.S. consumers, along with SUVs, took four of the 10 best-selling vehicle slots, the least expensive of which was the Ram at an asking price of $65,849.

“Costs are clearly increasing, for automakers, dealers and buyers alike,” said Cox Executive Analyst Erin Keating in the August report. “This month’s increase aligns with our expectations, reflecting a market that’s adjusting to new production realities and consumer preferences without tipping into volatility.”

Keating characterized the inflation as “relatively measured, more a gradual correction than a seismic shift.”

EVs posted record sales in August, Cox calculated, hitting more than 146,000 units and 10% of all sales as consumers rushed to secure expiring federal tax credits. The estimated EV ATP was consequently 3% higher month-over-month at $57,245 though flat year-over-year. 

Though tax breaks were the driving force in the month’s EV sales, a bumper crop of new models also contributed, said senior Cox analyst Stepanie Valdez Streaty, who pointed out that the mass-market originators of many models have cut into market leader Tesla’s share.

LEARN MORE: Dealer Doldrums Linger