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Kelley Blue Book Reports April Vehicle Price Increase

The Kelley Blue Book, known as an authoritative source for vehicle valuations and information, released its latest report on April 2025, revealing notable increases in new vehicle transaction prices. The average transaction price (ATP) for new vehicles rose to $48,699, marking a sharp 2.5% increase month-over-month, a significant jump compared to the typical 1.1% increase seen in April. Historically, only April 2020 experienced a more substantial increase at 2.7%, highlighting the current volatility in the automotive market amid discussions surrounding tariffs.

This month’s report also showcased that new vehicle prices had increased by 1.1% year-over-year, which, while falling short of long-term averages of over 3%, showed a steady price environment since the recovery of new vehicle inventory post-COVID-19.

The overall vehicle sales pace in April recorded impressive numbers, hitting 17.3 million, although it was lower than the previous month’s figures, yet the strongest result for April since 2021. During this month’s buying surge, vehicle sales incentives dwindled, recording 6.7% of ATP, slightly down from March’s 7.0% and marking the lowest percentage since the summer of 2024.

Compact and Subcompact SUV Trends

Within the highly competitive automotive sector, the Compact SUV segment, a favorite amongst consumers and especially sensitive to tariff developments, saw ATPs remaining relatively flat month-over-month and year-over-year at $36,416. Incentives for these vehicles shrank to 7.8% of ATP, a decrease from 8.2% in March. This cohort has averaged 9.1% in incentives over the previous year.

On a similar note, subcompact SUVs also maintained stable transaction prices with a decline in incentives, mirroring trends across the broader market. This pricing stability reflects a more cautious approach by automotive manufacturers amidst rising costs and market unpredictability.

Performance Insights by Brand

Looking into brand-specific performance, Audi, Land Rover, and Volvo reported higher transaction prices alongside reduced incentives compared to March figures. Conversely, General Motors’ brands, including Cadillac, Chevrolet, and GMC, also noted rising average transaction prices with minimal shifts in offered incentives. However, Buick experienced the opposite, recording declines in prices and an uptick in incentives. Notably, luxury brands such as Porsche and Land Rover achieved exponential growth in sales with transaction prices exceeding $113,000.

As the industry adjusts to pricing pressures heightened by tariffs, Ford adopted an advertising strategy focusing on price stability and local manufacturing. While Ford's transactions were relatively unchanged, the Maverick pickup, also built in Mexico, saw record sales with a significant increase in incentives to 6.6% of ATP.

Electric Vehicle Trends

The report revealed that prices for electric vehicles (EVs) hit $59,255, indicating a year-over-year increase of 3.7%. Incentives for EVs continued to decrease, falling to 11.6% of ATP, down from a peak of 13.9% in late 2024. Tesla outperformed in the EV sector with over 45,000 units sold in April, primarily driven by the popularity of the enhanced Model Y. The Cybertruck, despite its once high sales figures over $100,000, saw a significant drop in sales, registering below 2,000 units for the first time in a year.

While the market dynamics remain fluid due to external economic pressures and tariffs, the Kelley Blue Book’s report underscores the mixed performance across various vehicle segments and brands, leading to a continually evolving pricing landscape for consumers and manufacturers alike.

Conclusion

Kelley Blue Book, in its ongoing mission to provide reliable vehicle economic insights, reflects the complexities and nuances surrounding automotive transaction prices. As manufacturers, dealers, and buyers navigate these changes, information from industry leaders like Kelley Blue Book becomes paramount in making informed decisions in the automotive market.