New car prices dipped in May, but luxury buyers paid $8,700 more than a year ago

The average new-vehicle transaction price in the US slipped to $49,220 in May, down from $49,456 in April, according to Cox Automotive. Sales volume rose compared with both May 2025 and April 2026. However, the headline figure masks widespread price increases across key segments. Compact SUV/crossover prices rose 0.7% month-over-month to $37,757 and are up 3.4% year-over-year. Full-size pickup prices climbed 2.4% from May 2025 to $66,288 despite a 0.6% dip in May. The high-end luxury car segment saw the sharpest jump: average transaction prices surged 7.3% year-over-year to $127,436, up 3.3% from April’s $123,329 and $8,690 higher than the $118,746 recorded a year ago. Midsize SUVs are 2.9% more expensive than May 2025 at $50,185, subcompact SUVs rose 4.2% to $31,122, and compact cars are up 0.7% to $27,443. The manufacturer’s suggested retail price (MSRP) averaged $51,595 in May, essentially flat versus April’s $51,604, and up just 1.6% year-over-year. Industry incentive spending rose to 7.1% of the average transaction price in May, from 6.9% in April and 6.8% a year earlier. EV prices continued their 11-month slide, down 4% year-over-year, with the average EV transaction price now below the overall market average. EV sales totaled 85,000 units in May, the highest since the federal tax credit was eliminated in September 2025. Tesla’s average transaction price fell 1% month-over-month and 3.4% year-over-year, with 96% of its sales coming from the Model 3 and Model Y. Segment-by-segment data shows broad-based increases: entry-level luxury cars are up 4.2% year-over-year to $59,034; full-size SUVs rose 2.5% to $79,090; high-performance cars climbed 2.0% to $129,697; and luxury compact SUVs are up 3.6% to $41,902. Subcompact cars surged 21.8% year-over-year to $30,490, while sports cars tumbled 14.3% to $44,849. Brand-level data reveals Buick transaction prices jumped 10.1% year-over-year to $38,185, Dodge rose 7.4% to $52,560, and Porsche climbed 7.1% to $126,641. Land Rover and Mercedes-Benz were notable outliers, with prices down 1.1% and 2.5% respectively.