Car prices are out of control. With average new car transaction prices hovering around $50,000, some dealers have resorted to selling salvage-titled cars because many customers cannot afford other items on their lots. But if you think the industry has finally realized it’s unsustainable, think again.
As of June 30, the average market price of a new car reached $51,974, breaking a nearly three-year-old record. automotive news Report. “Average marketing price” is the amount that dealers are advertising for a specific vehicle with a discount, so it specifically refers to what dealers are charging, not the price set by vehicle manufacturers. data used by automotive news The franchise comes from the websites of dealers with inventory and pricing information for 133 nameplates, which account for most of the market, but not brands like Tesla, Lucid and Rivian that sell cars directly to customers.
Initially this record was broken only by a small amount. On June 26, pricing rose one dollar to above the previous record of $51,820 (set on July 7, 2023). Over the next four days it increased by an additional $154. The average on the last day of June was $2,421—or 4.9%—higher than the same day a year earlier, and $314 higher than a month earlier.
Asking prices increased in most, but not all, market segments compared to a year ago, according to automotive news. Compact sedans saw the largest increase, with the average market price rising to $2,869 – 12% from the end of June 2025. This may be a result of customers looking for affordable new cars, as well as a sign of increased demand for sedans that is causing Detroit automakers to consider bringing them back.
Five segments saw a decline in average value, but most were far from mainstream. Convertibles saw the biggest decline of 9.8%, followed by minivans at 3.2%. What automotive news “Full-size and extra-large luxury SUVs” as well as “luxury vans” also saw price declines, but defining the latter two as market segments splits hairs a bit.
Of the 133 nameplates tracked, 99 saw price increases, though some, like the Nissan Rogue’s 0.2% increase, were modest. Five nameplates saw an increase of more than 10% in average marketing price compared to a year ago. The Kia Telluride saw a 16.4% price increase, while the average price of the Toyota RAV4 increased 15.7% compared to last year. Both are popular models that were recently redesigned, so the jump in prices likely reflects high demand. On the other hand, Hyundai Ioniq 5 prices fell 17%, while Jeep Wrangler prices dropped 4% from a year ago.
