Average price of new car, average ‘asking price’ both reached record highs in December

The average price of a new car and the average manufacturer’s suggested retail price (MSRP) of a car both reached record highs in December.

On average, U.S. consumers paid $50,326 for new cars in December, a record high. The average MSRP for new cars also hit a new record at $52,267, though dealers offset that with year-high discounts of around 7.5%, according to Kelley Blue Book.

Year-over-year, the average transaction price for a new car in December jumped by 1.1% while the MSRP for new cars grew by 1.2%.

Consumer demand for luxury cars and full-sized pickups helped increase the monthly averages, according to an analyst for Cox Automotive, Kelley’s parent company.

“We typically see elevated prices in December, as the market delivers a strong mix of high-end and luxury vehicle sales,” said Cox Automotive Executive Analyst Erin Keating. “Last month, nearly 20% of shoppers bought luxury, a peak for 2025 – and that doesn’t include the volume of high-end pickups that were snapped up by affluent shoppers.”

U.S. consumers bought over 233,000 full-sized trucks, the highest number in five years, at an average price of $66,386, according to Kelley Blue Book.

The previous records for both average purchase price and average MSRP were set in September. The average price of a new car passed the $50,000 mark for the first time at $50,080, while the average MSRP for September was $52,183, according to Kelley Blue Book.

Foreign car manufacturers were the most expensive for U.S. consumers in December.

Of the manufacturing companies listed by the Kelley Blue Book report, Tata Motors of India, which only sells the traditionally British marques Jaguar and Land Rover in the U.S., was the most expensive with an average new car price of $101,513.

Mercedes-Benz Group AG came in second at $73,567, followed by BMW at $72,137, and by Geely, the Chinese-owned parent company of Sweden’s Volvo and Polestar brands, at $61,328.

Ford had an average new car price of $58,445, the only American manufacturer in the top five most expensive manufacturers. Volkswagen Motor Group’s cars were just slightly cheaper, with an average price of $58,440, according to the Kelley Blue Book data.