New-vehicle prices jumped in April to an average transaction price (ATP) of $48,699, according to Cox Automotive’s Kelley Blue Book – a 2.5% month-over-month spike that marks one of the sharpest April increases in more than a decade.
The report offers key takeaways for dealers navigating post-tariff market volatility: new-vehicle prices are rising, incentives are shrinking and certain brands – especially those with imported lineups – are seeing record sales ahead of anticipated cost hikes.
“Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing,” says Erin Keating, executive analyst at Cox Automotive. “Even though there was a surge in shopping and sales early on, the manufacturer’s suggested retail prices haven’t budged. The pricing landscape varies depending on the automaker, car segment and specific models – some are cutting incentives, others are in high demand, and the supply isn’t evenly distributed across the board.”
April’s year-over-year 1.1% ATP increase may seem modest, but it follows months of flat pricing and comes amid reduced discounting. Sales incentives fell to 6.7% of ATP in April, down from 7.0% in March and the lowest level since summer 2024.
Import Pressure and Brand Performance
For import-heavy brands like Porsche and Land Rover, which face tariff-driven price hikes, April became a rush month. Both saw their best sales of 2025. Porsche’s ATP soared above $114,000, with Land Rover close behind at $113,000, helping raise the industrywide average.
Meanwhile, domestic brands were split. Cadillac, Chevrolet and GMC posted higher ATPs with little change in incentives, while Ford leaned into its U.S.-built messaging. Ford’s pricing and incentives mainly remained flat, except for the Maverick pickup, which saw an all-time-high incentive level at 6.6% of ATP and a record 20,183 units sold.
Compact SUVs – among the segments most exposed to new tariffs – remained price-stable at $36,416 on average, but incentives dipped to 7.8%, compared to 8.2% in March and a 9.1% average over the past year. Subcompact SUVs showed similar patterns.
In the luxury space, Audi, Volvo and Land Rover raised prices while reducing incentives, whereas Acura and BMW moved the opposite way, cutting prices and increasing incentives.
EV Pricing Reaches 2025 High
Electric-vehicle pricing also hit a new high in April. The average EV ATP climbed to $59,255, a 3.7% increase year-over-year. EV incentives dropped for the second straight month to 11.6%, down from their November 2024 peak of 13.9%.
Tesla continued to dominate that segment, selling more than 45,000 units – its best month of the year – with the freshened Model Y driving volume. Tesla’s ATP rose to $56,120, while Cybertruck prices remained steep at $89,247 despite a sales slowdown below 2,000 units.
Despite Tesla’s gains, overall EV sales were down nearly 6% month-over-month but remain up 5.4% year-to-date.
Dealer Takeaways
For dealers, the April data signals a pricing environment shaped by a mix of international trade pressures, consumer urgency and shrinking room for incentives. Brands that can market domestic production, like Ford, leverage that messaging to their advantage. Those heavily reliant on imports are seeing a pre-tariff sales rush – an opportunity for dealers to move high-margin vehicles while demand is hot.
EV pricing strength and Tesla’s continued dominance may hint at a maturing premium EV segment, but waning incentives and slowing volume growth raise caution flags.
