Auto Prices Ride May Moderation
Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Incentives in May were concentrated among luxury vehicles, plus electric models, pickups and compact cars.
Mercedes
New-vehicle buyers got a relative break in May as prices held and incentives rose, which may have contributed to a monthly sales increase.
Still, some vehicle segments saw price increases, reported Cox Automotive’s Kelley Blue Book.
The average transaction price was flat from April at $49,220, according to the report. Though that was up 1% from last May, the year-over-year increase was the slightest so far this year and under the long-term May average of 3.5%.
Meanwhile, the average asking price was also essentially flat at $51,595, up about 2% year-over-year and under the long-term average of 3%.
The month-over-month flattening is typical for May, Cox said, citing an average 0.4% dip.
Some segments, though, actually posted record price increases, 3% for compact SUVs and 4% for subcompact SUVs.
Both supply and demand and brands’ product cycles are factoring into vehicle prices, said Cox Executive Analyst Erin Keating.
“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 freshened Ram pickup stepping in to capture buyers at the premium end,” she said.
Incentives rose slightly in May from 6.8% of the average transaction price last year to 7.1% and were concentrated among electric models, luxury vehicles, compact cars and full-size pickups. That continued a two-year trend of incentive spending averaging about 7% of ATP, Cox said.
Originally posted on F&I and Showroom
More Sales

Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Two Kinds of Agents and the 5 Ps That Separate Them
Follow these key guidelines to distinguish your agency from competitors by adding more value to your dealer clients' businesses.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
July Auto Sales Simmer
Deliveries were up modestly from a year ago despite still-high prices as OEMs offered more incentives and loan rates eased somewhat.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
June Automotive Boon?
A forecast for this month’s new-vehicle sales tells a familiar 2026 story: Year-over-year comparisons must be made in light of last year’s aberrations.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
Legacy Automakers Risk Falling Behind
As legacy automakers, mostly in the U.S. and Japan, have revised their 2030 electric-vehicle sales targets and shifted to a hybrid focus, they risk falling behind new market leaders.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →