ATLANTA, March 11, 2025 ~ The latest monthly report on new-vehicle average transaction prices (ATP) from Cox Automotive's Kelley Blue Book was released today, providing insights into the state of the automotive industry in February. The report revealed that while there was a year-over-year gain of 1.0% in ATP, there was a decrease of 1.3% from January.

One key takeaway from the report was that sales incentive levels remained mostly flat compared to the previous month, but were significantly higher compared to February 2020 by 18.6%. On average, incentives accounted for 7.1% of ATP, or approximately $3,392. This is an increase from last year's average of 6%. Notably, incentives for electric vehicles (EVs) saw an increase.

In terms of specific vehicle models, sales of the Mitsubishi Mirage – the only vehicle in the U.S. with an ATP under $20,000 – fell by 15% in February compared to January. The Mirage also had the lowest average incentive package at just 2.0% of ATP, well below the industry average of 7.1%. Reports suggest that this model has been discontinued. The Mitsubishi brand had the lowest average ATP in the industry at $30,410, followed by Nissan at $32,262.

More on Georgia Chron

• Junetini's Strawberry & Raspberry Lemonade Voted "Best RTD Cocktail in Atlanta"
• Pan-Armenian Digital Trade Center Launched on Fastexverse
• Stern Recruiting Launches with a Mission to Revolutionize Talent Acquisition
• Bonita Mitchell Releases Inspiring Single "Let This Mind Be In Me" From Book Soundtrack 'The First Lady'
• ASI Holds Annual Executive Business Summit Showcasing Suite of Solutions & Celebrates 2024 Partner Award Winners

The report also highlighted a trend towards higher-priced vehicles, with over 52,000 new vehicles transacting at prices above $100,000 in February alone. This is a significant increase from five years ago when only around 12,000 six-figure vehicles were sold during January and February of 2020. Land Rover's Range Rover was reported as having the highest sales among these high-priced vehicles with over 3,800 units sold last month.

In terms of specific segments within the industry, compact SUVs continue to be popular with an ATP of $36,198 in February – a slight increase of 0.5% from the previous year. This segment also accounted for 18% of all vehicle sales, with over 220,000 units sold.

However, not all brands saw an increase in ATPs. In fact, 11 out of nearly 40 brands tracked by Kelley Blue Book had lower ATPs compared to the previous year. The Stellantis brands – Chrysler, Dodge, Jeep, and Ram – saw notably lower ATPs in February compared to one year ago. Jeep had the largest decrease at over 11%, followed by Ram at nearly 7%.

Executive Analyst at Cox Automotive, Erin Keating, commented on the overall state of the industry, stating that February marks the five-year anniversary of the last "clean month" of data before the global COVID-19 pandemic hit and shifted the automotive landscape. She noted that while ATP has increased by 25% since then, incentives have decreased by 13% and monthly sales have decreased by 9%. Additionally, auto loan rates have also increased, making new-vehicle affordability a challenge for many households.

More on Georgia Chron

• Webinar Announcement: Collaborating for Digital Transformation: Innovation, Governance, and the Future of Financial Operations
• Veterans for America First condemns a faith-based smear campaign against Muslim Candidate Sophia Farooq in Cobb County Georgia as Integrity Matters
• Chisholm Chisholm & Kilpatrick Hosts Webinar to Help Georgia Veterans Navigate VA Disability Claims
• Nigeria is next biggest crypto-mining country - Oneminers is investing millions
• Corcoran DeRonja Real Estate Welcomes Mechelle Fuquay as Its Newest Broker

Keating also pointed out that while affordability may be an issue for some households, there is still a strong market for high-priced vehicles with a four-fold increase in sales volume since early 2020. She noted that this highlights the income divide in new-vehicle sales momentum as high-income households with prime and super prime credit scores continue to drive sales.

The report also provided data on EV prices and incentives. It revealed that in February, new EV prices were lower by 1.2% from January but higher by 3.7% compared to February 2020. The average incentive package for EVs was at a record high of 14.8% of ATP or approximately $8,162 – more than twice the overall market average. This is a significant increase from last year's average of 10.2%. Tesla, the market leader in EVs, saw a 1.8% increase in ATPs compared to the previous year, but a decrease of 3.7% from January.

Overall, the report paints a picture of a shifting automotive landscape with increasing prices and incentives for some segments and models, while others see decreases. The data also highlights the impact of the COVID-19 pandemic on the industry and the continued demand for high-priced vehicles. Data tables from the report are available for download for further analysis.

---

Show All News | Report Violation