Kelley Blue Book Report: New-Vehicle Prices Hold Steady in May, As Automakers and Dealers Work To Offset Tariff-Driven Cost Increases

• New-vehicle ATP held regular in Might at $48,799, just about unchanged from the revised April ATP of $48,811. In comparison with Might 2024, new-vehicle transaction costs had been increased by 1.0%.
• The brand new-vehicle gross sales tempo slowed notably in Might, falling to fifteen.6 million from a tempo of 17.3 million in April. Total, new-vehicle incentives elevated barely final month from 6.7% of ATP in April to six.8% in Might ($3,297). Incentives final month had been additionally largely unchanged from Might 2024. A yr in the past, incentive packages averaged 6.7% of ATP.
• A majority of automakers diminished incentive spending final month. Volkswagen, Mazda, Land Rover, Volvo and BMW all diminished incentive spending by greater than 10%. Incentives had been additionally notably decrease month over month for Chrysler, Jeep and Ram. Tesla, Toyota and Nissan, conversely, elevated incentive spending considerably in Might. Even with a rise of greater than 20%, Toyota continues to spend properly under the {industry} common on incentives, averaging roughly 4.1% of ATP in Might, up from 3.4% in April.
• The typical producer’s steered retail worth (MSRP) for a brand new car in Might was $50,968, a rise from $50,774 in April and the very best level in 2025. The brand new-vehicle common MSRP in Might was 2.1% increased yr over yr; the long-term common improve is 3.5%. The typical new-vehicle MSRP peaked in December 2024 at $51,990.
• Transaction costs held regular month over month for lots of the hottest, best-selling autos. Transaction costs and incentive ranges had been largely unchanged within the Compact SUV and Mid-size SUV segments – the 2 largest segments. In Might, the common worth paid for a Compact SUV – the best-selling section within the U.S. – was $36,515. Incentive spending within the Compact SUV section elevated to eight.0% of ATP in Might from 7.9% in April.
• Sports activities Automobiles, Luxurious Automobiles and Luxurious Subcompact SUVs noticed costs climb essentially the most month over month in Might. Fashionable Small/Mid-Measurement Pickup Vehicles additionally posted increased costs month over month in Might, growing 0.9% to $42,062; incentives ticked barely decrease, from 6.0% of ATP in April to five.9% in Might.

Quote from Erin Keating, Govt Analyst, Cox Automotive
“Whereas tariff coverage is including uncertainty to the new-vehicle market, costs are holding remarkably regular, a reminder that auto {industry} change is commonly gradual. Many automakers are preserving true to a promise to carry the road on pricing, no less than within the close to time period. We’re nonetheless anticipating costs to maneuver increased by means of the summer season, because the inflationary influence of tariffs begins to hit. Proper now, we imagine vendor profitability is being squeezed, as prices on many merchandise are going up, however elevating retail costs on this setting is an actual problem.”

As Tesla Costs Decline and Incentives Improve, Electrical Automobile Affordability Improves

• The Kelley Blue Ebook group’s preliminary estimate of latest electrical car ATP in Might is $57,734, down from a revised $59,123 in April. New EV costs in Might had been decrease yr over yr by 1.1%.
• EV incentives jumped increased in Might, with the common incentive package deal growing from 11.6% of ATP in April to 14.2% of ATP ($8,225), greater than twice the extent of industry-wide incentives and up from 12.0% a yr earlier. In Might, EV incentives had been on the highest degree within the fashionable period of EV gross sales. (Cox Automotive considers the trendy EV period to have begun in 2018, when EV gross sales achieved greater than 1% of whole market share.)
• Tesla common transaction costs declined in Might, falling 1.5% to $55,277. Tesla costs in Might had been decrease yr over yr by 2.8%. Mannequin 3 and Cybertruck costs elevated modestly – lower than 1% – month over month in Might, whereas all different Tesla merchandise confirmed a month-over-month decline. Tesla’s best-selling product, the Mannequin Y, had a median transaction worth in Might that was 2.9% decrease than in April, at $53,895. The Mannequin Y can also be the best-selling EV within the U.S.

Information tables can be found for obtain.