Kelley Blue Book Report: New-Vehicle Costs Rise in June, Outpacing Transaction Prices as Sales Slow, Incentives Tick Up

Published 1 day ago• 3 minute read

, -- The cost of a new vehicle climbed higher in June, according to data released today by Kelley Blue Book, a Cox Automotive brand, but the average transaction price (ATP) increase was relatively mild and below the long-term average. New-vehicle sales incentives held mostly steady last month, increasing only modestly from May. The sales pace in June was little changed from the previous month, and inventory climbed higher. Key takeaways from the Kelley Blue Book June ATP report include:

Quote from Erin Keating, Executive Analyst, Cox Automotive

"The months ahead are shaping up to be 'the big squeeze,' as the real headline this summer will be the growing disconnect between rising costs for automakers and dealers and relatively flat consumer prices. As average MSRPs continue to climb, the modest increase in transaction prices suggests the businesses are absorbing more of the burden and not passing the added costs to consumers—something that will impact profitability if the trend persists."

Electric Vehicle Incentives Climb Higher as Sales Slow, Prices Moderate

With sales of market leader Tesla slowing, average transaction prices have decreased. In June, Tesla's ATP was $54,989, down from May's ATP of $55,276 and lower by 5.7% year over year. The new Model Y, the best-selling EV in the U.S., saw its ATP decline modestly to $53,224 in June from $53,898 in May. In June, Tesla sold 25,095 Model Ys, its best month so far in 2025.

Kelley Blue Book
Founded in 1926, Kelley Blue Book, The Trusted Resource^®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry for nearly a century. As the industry standard for generations, Kelley Blue Book provides transparent, objective information and data-driven, innovative tools for consumers, automotive dealers and manufacturers. Kelley Blue Book publishes millions of market-reflective values weekly on its top-rated website KBB.com, from its famous Blue Book^® Trade-In Values to the Kelley Blue Book^® Price Advisor tool, which offers a range for what consumers reasonably can expect to pay for a vehicle in their area. KBB.com editors rate and review hundreds of new vehicles each year to help consumers understand the Best Cars and Best SUVs to meet their needs. Kelley Blue Book℠ Instant Cash Offer provides a redeemable trade-in offer to transaction-ready consumers and conveniently connects them to local participating dealers. Kelley Blue Book's Service Advisor provides guidance on how much to pay for service and repairs, allowing consumers to schedule service with local dealers on KBB.com. Kelley Blue Book also provides vehicle values to finance and insurance companies as well as governmental agencies. Kelley Blue Book is a Cox Automotive brand.

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