New car prices soared to the highest level yet this yearDetroit Free PressJamie L. LaReau, Detroit Free PressSat, September 12, 2026 at 11:03 AM UTCAdd us on GoogleCar buyers are getting hit from all angles these days, but experts offer advice on ways you can still find a deal.According to Kelley Blue Book, data released the week ending Sept. 11 showed the average U.S. new-vehicle transaction price climbed to $50,089 in August. That's the first time it has crossed the $50,000 threshold this year.The price is 1.9% higher than a year ago. The average transaction price reflects what a buyer paid for a car after accounting for the trade-in value. Kelley Blue Book average transaction prices do not include applied consumer incentives.AdvertisementAdvertisementThe average Manufacturer's Suggested Retail Price (MSRP), in other words the window sticker, also climbed last month. It was $51,852, up 2.2% year over year, Kelley Blue Book said.Woody Gontina, 49, Royal Oak, takes delivery of his new Ford F-150 Lightning that he purchased from New Car Salesman Liam Belill, 28, of Flushing, Mich. at Szott Ford dealership in Holly on Thursday, Aug. 8, 2024.Which gets to the next issue: Carmaker discounts.Kelley Blue Book's data showed that automakers offered fewer incentives last month. The average incentive in August amounted to 6.5% of the transaction price, down from 7.2% in the year-ago August. That means if a car's transaction price was $40,000, the average discount last month was about $2,600 compared with $2,880 a year earlier."We see new car prices continue to go up, the manufacturers are cutting back the number of incentives to help move those cars and we're seeing a delay in the 2027 model year cars coming to market," Ray Shefska, co-founder of CarEdge, told the Detroit Free Press on Sept. 11. "It's indicating to me those prices on 2027 models will likely go up, too."AdvertisementAdvertisementCarEdge is a consumer platform that helps people research, shop for, and negotiate new and used vehicle purchases. Shefska said he believes the auto manufacturers are holding on to incentive money until November and December and will do a big year-end push to sell down the 2026 models. At that time, many dealers will be motived to move inventory, too.Shefska's advice: "If someone is looking for a new car, the play is to wait until as long as they can into December."'Price inflation is real'According to Shefska, who checks Automotive News every day for the average marketed new car price, the price on Sept. 11 is the highest he's seen it hit yet. The average marketed price for a new vehicle was $52,576. That's $2,682 more than the year-ago period, he said. Average marketed price means the price consumers see on dealership websites.While new car "price inflation is real," automotive price increases have been moderate in recent years, Erin Keating, executive analyst at Cox Automotive, which owns Kelley Blue Book, said in a statement. Still, she said, most American households face financial pressure, which is steering more shoppers toward lower price points.Sales consultant Andre Woods, left, helps Al Janowski, 81, with paperwork for his 2020 F-150 lease at Village Ford in Dearborn Wednesday, May 27, 2020. New social distancing norms have a sneeze guard at Woods work station. Car dealerships in Michigan can now open their showrooms to customers by appointment only."We expected transaction prices to move back above the $50,000 mark in 2026, as new-vehicle prices typically increase through the year and especially in the second half, when next-model-year vehicles begin arriving at dealerships," Keating said. "The continued strong growth of subcompact SUVs highlights how important affordability remains in today's market."AdvertisementAdvertisementThe subcompact SUV segment has the lowest average transaction price. In August, the average transaction price in that segment was $31,149, up 2.2% year over year, Kelley Blue Book data showed.According to Kelley Blue Book, here are the average transaction prices in August for Detroit's automakers across their lineup of brands:Ford: $60,106, up 4.6% from $57,440 in August 2025.General Motors: $54,255, up 0.9% from $53,770 in August 2025.Stellantis: $58,833, up 5.5% from $55,754 in August 2025.How to survive sky-high pricesShefska said the sky-high price of new cars "tells you everything you need to know.""Even though every automaker and every dealer has said affordablity is a crisis, they're not doing anything about it," Shefska said. "Every one of these automakers are producing fewer cars; inventory levels are lower than they have ever been; they are cutting back their incentives, too. Once they wholesale the car to the dealer, the manufacturers have made their money. So the rich are the folks who are buying them and the rest of us" are getting you-know-what.AdvertisementAdvertisementWith new car prices peaking, it is creating stronger demand for affordable used vehicles — if you can find them. Shefska suggests, if you need a car, be open to buying a retired service loaner car that has been turned into a certified pre-owned car.A certified pre-owned car usually comes with a full-warranty and a buyer can see significant savings if they are willing to buy a car that has a few thousand miles on them. He said buying such a vehicle can result in a $6,000 to $8,000 savings. Also, Shefska said most dealers keep service loaner fleets active for only four to six months before certifying them and selling them, so they do become restocked regularly.If you are seeking an older model used car or one that is not certified, good luck. Shefska said used-vehicle demand increased 2.3% year over year in August, while the average used price held at $30,200 for the fourth consecutive month. He got his used-car data from CarGurus.Those used vehicles that are priced below $30,000 carried only about a 52-day market supply. The industry norm is 60 days. Yet, used vehicles priced above $80,000 sat for an average of 91 days, Shefska said.AdvertisementAdvertisementPut simply, the affordable cars that consumers want most are selling much faster than high-priced inventory.Shefska added, "We're going to see the younger, used-car prices continue to go up because the new car prices continue to go up. One doesn't happen without the other."More: Ford leaders 'blindsided' by DOT's letter about China ties, exec saysMore: Ford to invest $1B in Kentucky plant that makes key trucks, SUVsJamie L. LaReau is the senior autos writer at USA TODAY Co. who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.This article originally appeared on Detroit Free Press: New car prices soared to the highest level yet this year
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