Record Spending of $15 Billion on Pickup Trucks Drives New-Vehicle Prices to Historical Highs

Kelley Blue Book Reports Record Vehicle Prices in December 2025

December 2025 proved to be a landmark month for the automotive industry, with average transaction prices (ATP) for new vehicles reaching an unprecedented height of $50,326, according to Kelley Blue Book. This surge was largely influenced by an impressive number of sales in the midsize SUV and full-size pickup truck categories.

Breaking Down the Numbers

The end of the year typically witnesses a spike in new vehicle prices; however, this December surpassed expectations. The reported ATP was not only a notable 0.8% increase compared to the same month last year but also represented a month-over-month rise of 1.1%. The manufacturer’s suggested retail price (MSRP), often regarded as the asking price, also hit a record high of $52,627, marking a steady upward trend, with MSRP remaining above the $50,000 mark for eight consecutive months.

Interestingly, the proportion of incentives offered in December – at 7.5% of ATP – reflected the highest level for the year, although slightly less than the year prior's 7.9%. These figures underline the dynamics of a market that is increasingly competitive and preferred by shoppers.

Midsize SUVs and Full-Size Pickup Trucks: The Best Sellers

In December, the midsize SUV segment, which includes popular models such as the Ford Explorer, Jeep Grand Cherokee, and Toyota 4Runner, emerged as the best-selling segment with a remarkable 16.8% market share, edging past compact SUVs, which accounted for 16.2%. The average ATP for midsize SUVs stood at $49,144, helping elevate the overall ATP.

Full-size pickup trucks also played a crucial role in boosting average prices. With sales exceeding 233,000 units, this segment experienced its best performance in five years, leading to an estimated revenue exceeding $15 billion, a first for December. The average price of full-size pickups reached $66,386, slightly below the peak recorded earlier in October 2025.

Insights from Industry Analysts

Erin Keating, an Executive Analyst at Cox Automotive, remarked, “December tends to showcase higher prices due to a compelling mix of luxury vehicles in demand. The ATP reflects purchases in a given month, highlighting that close to 20% of buyers opted for luxury vehicles, which was a peak for 2025.”

This pattern demonstrates a shift in consumer preference, with affluent buyers driving up the sales of high-end vehicles and pickups.

Electric Vehicles' Performance

In contrast to traditional vehicles, electric vehicles (EVs) presented a mixed bag. In December, the average price of a new EV reached $58,034, a 2.4% increase year over year but slightly lower than in November. Notably, incentives for EVs soared to an impressive 18% of ATP, consistent with record sales figures of over 84,000 vehicles – the best month since government-backed incentive programs ended.

Tesla, a significant player in the EV market, reported an ATP of approximately $53,680, indicative of a decrease of 2.9% compared to the previous year.

Despite a marginal decline of 2% in total EV sales for the year to around 1.28 million units, predictions for 2026 suggest a stabilization due to new releases and enhancements in the charging infrastructure across the United States.

Conclusion

The automotive market continues to show resilience despite fluctuations. December 2025's record numbers reflect a dynamic interplay of consumer preferences, socioeconomic factors, and industry trends. As we delve into 2026, staying informed about pricing trends and sales performance remains imperative for both consumers and industry stakeholders alike.