The Average New Car Price Is Now Over $50k In The US, And EVs Are To Blame

Kelley Blue Book, which is about as reliable a source as you can have for tracking vehicle pricing, says September was a watershed moment for new-vehicle pricing. It claims that, for the first time, the median price of a new car in the United States is over $50,000. And yes, the higher cost of EVs and the rapid uptick in EV purchases are to blame.

This finding isn’t sudden, though. EV sales have been on the rise for months, and the average cost of an EV hasn’t risen dramatically. The average EV selling price ($58,124) was up 3.5 percent in September when compared to August, but it’s considered a “normal” inflation rate. Year over year, EV pricing is essentially flat, Kelley Blue Book says. The average price for a new vehicle is $50,800.

How EVs are changing the average auto sales price

Kelley Blue Book says September’s Average Transaction Price (ATP) rose thanks in part to luxury vehicles and EVs. EVs comprised 11.6 percent of new vehicles sold in September, a record high. In the third quarter of 2025, 437,487 EVs were sold in the United States, giving the electrified segment a 10.5 percent market share, up 30 percent from Q3 2024.

The cost of an EV is actually down slightly (0.4 percent). Tesla, which has the largest share of the EV segment by volume, is also down. The average price of a Tesla in September 2025 is $54,138, 6.8 percent lower than in August 2024. This suggests its two luxury EVs, the Model X and Model S, are selling poorly, as the average price for a Model Y and Model 3 doesn’t match the average price decline for the automaker.

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“Today's auto market is being driven by wealthier households who have access to capital, good loan rates and are propping up the higher end of the market,” says Erin Keating, Executive Analyst, Cox Automotive. “Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new-vehicle ATP into uncharted territory. We've been expecting to break through the $50,000 barrier. It was only a matter of time, especially when you consider the best-selling vehicle in America is a pickup truck from Ford that routinely costs north of $65,000. That's today's market, and it is ripe for disruption."

Final thoughts

The elephant in the room is tax credits. Many rushed to purchase an EV because federal tax credits for electrified vehicles expired at the end of September. This undoubtedly bolstered these figures, which we expect will deflate in Q4. Automakers are hedging bets on electrification because nobody knows how a long-term tax-credit desert will affect sales.

Many automakers are building low-cost EVs, too, which could help customers find their way to electrification. The six-figure luxury auto market, which Kelley Blue Book calls “rare air,” is buoyed by the 4,320 units Cadillac sold for its Escalade line. Below the six-figure line, there are now 60 models priced above $75,000, accounting for 9.4 percent of overall auto sales.

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