New Car Prices Rise in February; EVs Moderate Increase and Tesla Shines

February brought an increase in average new vehicle prices, with rising EV incentives and Tesla maintaining momentum even amid the general drop.

New Car Prices Rise in February: EVs Get a Price Truce

Data from Kelley Blue Book indicates that February brought a rise in average transaction prices (ATP) for new vehicles, with ATP climbing 3.4% year-over-year to $49,353 and 0.3% from January.

The average MSRP stood at $51,440, marking the 11th consecutive month above $50k and a 3.5% increase compared to the previous year. Incentives remain strong, averaging 6.9% of ATP, with larger packages for luxury and compact SUVs.

Performance by Segment

• Midsize SUVs: ATP $50,148, +3.5% YoY
• Compact SUVs: ATP $36,807, +1.6% YoY
• Full-size pickups: ATP $66,157, +2.9% YoY
• Subcompact SUVs: ATP $30,836
• Compact cars: ATP $27,341

The top five segments collectively average close to $44,000; when the most expensive pickups are excluded, the average drops to about $39,000.

EVs and Incentives

EV ATPs fell to $55,300, showing a 1.4% decrease compared to the previous year and 0.6% from January. EV incentives grew to 14.2% of ATP, more than double the industry's general average.

Tesla maintained solid performance among EVs, with ATP at $53,821, up 3.0% YoY, despite an 8.9% drop in sales to 38,500 units. Even so, Tesla outperformed the roughly 26% decline recorded by the EV market as a whole.

Erin Keating, executive analyst at Cox Automotive, highlighted that February's advance reflects a normalization of prices, not volatility, and reminded that most vehicle volume remains below the $50,000 range.

Conclusion

The scenario points towards further adjustments in new vehicle prices in the coming months, with an emphasis on EV incentives and the resilience of specific brands like Tesla.

Leave in the comments: do you believe prices will maintain this trajectory or will they rise again in the coming months? Which segment or model do you find most attractive in this pricing environment?