Rising new car prices are causing consumers to either sell their cars or buy used ones.
Analysts said rising new car prices would push down sales forecasts.
- The average price of a new car reached an all-time high of $50,326 in December 2025.
- Consumer preference for luxury models and high-end pickups contributed to record prices.
- Tata Motors had the highest average transaction price among automakers at $101,513.
Car buyers paid a record average of $50,326 for a new car in December 2025, according to Kelley Blue Book.
The group said the average price of a new car rose 0.8% in December compared to November’s average price of $49,814. Kelley Blue Book also announced that automakers’ December 2025 average MSRP was at a record high of $52,627, 1.2% higher than in November.
Erin Keating, an executive analyst at Cox Automotive, said in a statement that the record-high average vehicle sales price may be due to higher sticker prices commonly seen in December, as well as consumer preference for luxury models, leading to higher monthly transaction totals.
“Prices typically go up in December because there’s a lot of luxury and luxury car sales in the market,” Keating said. “Nearly 20% of shoppers purchased luxury goods last month, which will peak in 2025. This does not include the amount of luxury pickups purchased by wealthy shoppers.”
What are the average prices for different types of cars?
According to Kelley Blue Book, midsize SUVs became the best-selling vehicle segment in December for the first time in 2025, contributing to higher average transaction prices than during the period when small SUVs led sales, the group said.
Here are the average selling prices for popular car segments:
- Full-size pickup truck | $66,386
- Electric car | Electric car $56,691
- Midsize SUV | $49,114
- Compact SUV | $36,417
What was the most expensive car brand in December 2025?
Tata Motors was the automaker with the highest average transaction price in December 2025. The German automaker’s average selling price was $101,513, up 2.2% from November’s average price of $99,324.
Here are the average transaction prices for other automakers in December 2025:
- BMW | $72,137
- Geely Auto Group | $61,328
- Ford | $58,445
- Volkswagen | $58,440
- General Motors | $55,805
- Stella | $55,418
- Tesla | $53,680
- Toyota | $45,584
- Hyundai | $38,893
- Honda | $38,884
- Subaru | $37,126
- Renault-Nissan-Mitsubishi Alliance | $36,878
- Mazda | $36,243
