New car prices set another record in December despite automakers’ year-end promotions.
According to Kelley Blue Book, the average transaction price for a new vehicle in December was $50,326, the highest level since the data began being tracked. That was up 1.1% from November, when the average was $49,774.
The average manufacturer’s suggested retail price, or MSRP, also reached a record. Kelley Blue Book said the average MSRP in December was $52,627, up 1.2% from the prior month.
Jay Jang, a vice president at Eden Motor Group, said popular 2026 model-year vehicles were in shorter supply than usual. “Recently, supplies of popular 2026 model-year vehicles were significantly lower compared with previous years,” he said. “With supply being controlled, some models traded at higher prices even though it was year-end.”
According to Auto News, the national new-vehicle inventory totaled 2.92 million units in December, down from the previous month.
The industry also pointed to a year-end shift toward higher-priced vehicles.
Erin Keating, a senior analyst at Cox Automotive, said December often sees average prices rise as incentives and promotions increase the share of higher-priced vehicles sold. She said the luxury share of purchases in December was nearly 20%, the highest level in 2025. She added that demand for high-priced pickup trucks also helped push the average transaction price higher.
By vehicle type, December marked the first time midsize SUVs became the top-selling monthly segment last year. Because midsize SUVs have a higher average price than compact SUVs, the shift was also seen as a factor in the overall increase in the average transaction price.
Average transaction prices by major segment in December showed full-size pickup trucks were the highest at $66,386. Electric vehicles averaged $56,691. Midsize SUVs averaged $49,114, while compact SUVs averaged $36,417.
By automaker, Hyundai’s average price in December was $38,893, down 0.2% from November. The decline was attributed to aggressive year-end promotions. Luxury brand Genesis averaged $65,582, up 0.2% from November, while Kia averaged $36,763, up 0.1%.
Toyota and Lexus were about the same as the prior month at $42,356 and $61,902, respectively. Honda averaged $37,671, up 0.3%.
BMW rose 1.8% to $73,932, and Audi rose 1.7% to $65,983. Mercedes-Benz fell 1.6% to $73,567.
Tesla, which has recently seen slowing sales, averaged $53,680 in December, down 1.2%.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
