The monthly new-vehicle average transaction price (ATP) report from Cox Automotive’s Kelley Blue Book shows new-vehicle ATP held mostly steady month over month and year over year in March at $47,462, down slightly from the revised-lower ATP of $47,577 in February. In March, new-vehicle ATPs were higher year over year by less than 1%.

Sales incentives in March were flat compared to February at 7.0% of ATP, but higher by 5% than year-ago levels when incentives were equal to 6.7% of ATP. For a year now, new-vehicle incentives have averaged near 7.1% of ATP; incentives during the past 12 months peaked in November and December of 2024 at 7.9% of ATP. Last month, the average incentive package was $3,339.

In March, only 26 models had ATPs below $30,000, accounting for roughly 14% of total U.S. sales.

While transaction prices and incentives held mostly steady in March, sales roared. According to Kelley Blue Book estimates, new-vehicle sales in March topped 1.59 million units, the best sales volume month in nearly four years. Sales in March were nearly 30% higher than in February, as many consumers rushed to buy vehicles before the expected tariff-driven price hikes took hold.

Among core, volume brands, most showed price increases year over year in March, with Infiniti, Lincoln, Mazda, Porsche and Volvo all leading the way. Average transaction prices of Infiniti (up 18.9%) and Porsche (up 11.5%) were up the most year over year in March. Jeep (-10.6%), Ram (-5.8%) and Mercedes-Benz (-4.7%) all had lower ATPs year over year in March.

In segments with significant sales, incentive spending in March was highest in the Luxury Car segment, followed by Compact SUVs and Full-Size Pickups. Shoppers looking for good deals in March were likely most disappointed in the Small/Midsize Pickup segment (average incentives at 4.6% of ATP), Luxury Full-Sized SUV (4.5%), Full-Size SUV (3.8%), and High-Performance Car (2.6%) segments.