As year-end sales season comes to a close, the state of today’s new car market is coming into focus. According to new numbers from Kelley Blue Book, the average transaction price (ATP) for a new vehicle rose in December 2024, once again approaching all-time highs. The average transaction price for a new car was $49,740 in December 2024, up 1.3% year over year and 1.5% higher than in November. December is often a peak month for new car prices due to the popularity of luxury models during the holiday season. While December 2022 still holds the record for the highest prices ever at $49,958, December 2024 came remarkably close, fueled by strong sales of luxury vehicles.
New Car Price Trends: Big Incentives and Rising Luxury Sales
While new car prices rose, sales incentives remained steady at 8.0% of the transaction price, or approximately $3,958 per vehicle. This marks a 44% increase in incentives compared to a year ago, when new car incentives accounted for just 5.5% of selling price on average.
Incentives were particularly robust in specific segments, with entry-level luxury cars (10.0%), compact SUVs (9.7%), and luxury compact SUVs (9.4%) leading the pack. On the other hand, categories like luxury full-size SUVs, sports cars, and small/mid-size pickup trucks saw the smallest incentives during 2024’s year-end sales.
Certain automakers stood out for their generous incentives. Volkswagen, Ram, and Nissan offered incentives exceeding 13% of the average transaction price, while Toyota, Land Rover, and Porsche offered the least discounts in December.

December also saw strong sales of high-priced vehicles, which typically drive the year-end surge in new car prices. Notably, 5.6% of all new car sales transacted at prices above $80,000. Roughly 84,000 new cars sold above $80,000 in December 2024, the highest volume ever recorded. Full-Size pickup trucks played a significant role in the rising new car prices, with an average transaction price of $64,261.
Mitsubishi, Stellantis, and Volkswagen Offer Glimmer of Hope

Despite the general upward trend, some brands recorded year-over-year price decreases in December 2024. Mitsubishi led the way with prices dropping more than 12% compared to December 2023. Buick and Volkswagen followed with decreases of 7.0% and 6.0%, respectively. Stellantis brands also saw price declines, with Jeep prices falling by 6.3%, Chrysler and Dodge prices down 4.3%, and Ram prices dipping 1.6%.
In contrast, several automakers experienced notable price increases. Cadillac transaction prices rose nearly 13% year-over-year in December. Tesla’s prices climbed 10.5% as Cybertruck sales drove the average higher.
What It Means for Car Buyers in 2025
December’s near-record highs weren’t entirely unexpected. The last month of the year is known as the best time of the year to buy a car, with both year-end incentives and holiday shopping driving the rush to buy. 2025 has arrived, and yet some year-end incentives were extended. January is unlikely to surpass December’s recent high, but with MSRPs creeping ever higher, the all-time record is within reach.
With average new car prices nearing record levels, it’s more important than ever for buyers to approach the market armed with tools to maximize their savings. Whether you’re shopping for a compact SUV, a luxury car, or a full-size truck, understanding the nuances of pricing trends and incentives is key to securing a great deal. That’s where CarEdge Insights comes in.
Shopping new car incentives is more important than ever with rising prices. Each month, we gather all of the best new car deals in one spot, the CarEdge Deal Hub.
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