- Americans pushed truck purchases to elevate average transaction prices.
- The December 2025 Average Transaction Price (ATP) reached $50,326, marking a 0.8% year-on-year increase and a 1.1% month-over-month rise.
- Over 233,000 full-size trucks were sold, with an average price of $66,000, reports Cox Automotive.
December is typically a strong month for vehicle sales, but December 2025 achieved remarkable highs. The average transaction price (ATP) in the U.S. surpassed $50,000 for the first time in September and continued to soar, driven predominantly by increased truck sales.
Kelley Blue Book indicates that the ATP for new vehicles climbed to an impressive $50,326 in December 2025. This not only reflects a 0.8 percent increase from the previous year but also signifies a 1.1 percent rise from November. The strong demand for full-size trucks contributed significantly to this growth, with consumers spending an astonishing $15 billion on these vehicles that month.
Full-size pickups, particularly the Ford F-150 and Chevrolet Silverado, averaged around $66,386 in December, noting a modest increase of 1.9 percent compared to the same period last year. The sale of over 233,000 units highlights the popularity of this vehicle segment, acting almost like an economic turbocharger that boosted overall industry averages.
Rising Demand for Luxury Vehicles
The surge in average prices is not solely a reflection of general inflation; it also signifies a shift in consumer purchasing behavior. Almost 20 percent of vehicle buyers opted for luxury options in December. This trend does not account for high-end trucks, which increasingly resemble luxury vehicles complete with premium features and finishes.
Transaction Prices and Market Dynamics
Notably, the December ATP of $50,326 is what consumers actually pay at dealerships. The average manufacturer’s suggested retail price (MSRP), or the asking price, also hit a new high of $52,627, reflecting an increase of 1.2 percent from December 2024. For the eighth consecutive month, the average MSRP has stayed above the $50,000 mark.
While the average industry incentive in December rose to 7.5 percent of the transaction price, it remains lower than last year and significantly beneath pre-pandemic levels. This disparity underscores the reality of rising prices in the market. Cox Automotive’s Executive Analyst Erin Keating noted that elevated prices are common in December, attributed to a strong mix of luxury vehicle sales.
EV Market Insights
In the electric vehicle (EV) sector, December revealed a mixed performance. Average transaction prices for EVs dipped slightly but still hovered above $58,000, benefiting from enhanced incentives. An impressive 18 percent incentive rate, more than double that of traditional combustion vehicles, likely contributed to driving monthly electric vehicle sales above 84,000 units, marking the best performance since the removal of certain tax credits.
As we analyze the data, it becomes evident that the automotive market is in a state of evolution, marked importantly by consumer preferences shifting toward more expensive and luxurious options, especially within the truck segment. The metrics for December show that the industry is adapting to these changes, which will likely continue shaping vehicle sales in the coming years.
