These 5 Brands Have the Worst Car Price Inflation in 2025

by Justin Fischer | Last updated Jun 10, 2025 | Car Buying, Electric Vehicles, New Cars, News

It’s not your imagination — some automakers really are raising prices more than others. A new market analysis shows that while average new car prices are inching higher in 2025, the real story is more nuanced. While some automakers are piling on the incentives, others are moving in the opposite direction.

At first glance, car prices appear relatively stable. According to the latest data from Kelley Blue Book, the average transaction price for a new vehicle held steady at $48,799 in May. Compared to May 2024, that’s a 1.0% increase. Meanwhile, the average MSRP ticked up to $50,968, a 2.1% increase year over year. 

But a closer look at individual automakers reveals some surprising trends. Here’s a look at which brands are raising prices the most, and which are doing the opposite.

Which Brands Are Raising Prices?

While prices rose across the board, five automakers posted the highest year-over-year increases in transaction prices. The numbers are eye-opening:

One important factor driving price inflation is the introduction of all-new, higher-priced models. Some automakers are leaning into premium segments, especially in electric vehicles. General Motors, for instance, has been ramping up production of high-dollar electric trucks in 2025, like the GMC Hummer EV and Silverado EV. These pricey additions skew the average transaction price upward, even if legacy model pricing remains more stable.

At the same time, incentive spending is being reined in. Volkswagen, Mazda, Land Rover, Volvo, and BMW all reduced incentive spending by more than 10% in May. Chrysler, Jeep, and Ram also offered fewer discounts. 

On the other end of the market, Tesla, Toyota, and Nissan boosted incentive spending. Toyota increased incentives by over 20% month-over-month. Still, Toyota’s incentive spending remains modest at just 4.1% of the average transaction price. If you’re looking for a great deal, it might be worth an electric test drive. EV incentives average 14% of the average transaction price in 2025.

Where Prices Are Falling in 2025

While some automakers are raising prices, others are lowering them. The truth of the matter is, most of these falling prices are not due to lower MSRPs, but instead result from higher incentives. 

Five automakers saw year-over-year price decreases in May 2025:

As you can see, car price trends are far from uniform in 2025. While some brands push further into premium territory, others are using huge incentives to stay competitive, or simply to finally move 2024s off the lot. Stellantis, in particular, has aggressively discounted models like the Jeep Grand Cherokee and Ram 1500 amid growing inventory. Nissan is doing much of the same.

Interestingly, Stellantis shares something in common with one of the automakers raising prices the most: Volkswagen. Despite taking opposite approaches to pricing, both of these global giants consistently appear on the list of slowest-selling vehicles each month. Here’s a look at the models struggling the most on dealer lots today:

See the complete list: The Fastest and Slowest-Selling Cars Right Now

In short, these trends reflects a broader shift in strategy across the auto industry: sell fewer vehicles, but make more profit on each one. That’s exactly why automaker profits have soared in the post-pandemic era. For many OEMs, the 2020–2022 supply chain bottlenecks turned into a “when life gives you lemons, make lemonade” moment. Instead of chasing volume, automakers leaned into higher-margin models.

What Smart Buyers Can Do in Summer 2025

With prices continuing to climb for some brands and segments, buyers need to be more strategic than ever. Here’s how to navigate this market:

1. Shop the deals. Low APR financing and attractive lease offers are out there, but you have to know where to look.
➡️ Compare deals now

2. Stay flexible. Don’t fall in love with one specific make or model. Today’s “dream car” might cost you hundreds more each month compared to a more affordable alternative.
➡️ Find fair prices with CarEdge Pro

3. Look beyond the sticker price. Total cost of ownership matters more than ever. A car with great fuel economy, low depreciation, and strong reliability will save you thousands down the road.
➡️ Use CarEdge Research to find the best value… It’s FREE data!

4. Get expert help. Don’t go it alone. A CarEdge Concierge can help you compare options, negotiate on your behalf, and ultimately save big — all while reducing stress.
➡️ Learn how a personal Concierge can help you today.

New Car Prices Will Soon Cross $50,000 For the First Time

by Justin Fischer | Last updated Jun 6, 2025 | Car Buying, Electric Vehicles, New Cars, News

A major milestone is fast approaching in the auto market: the average new car selling price is about to surpass $50,000 for the first time. After years of rising MSRPs, stubbornly high interest rates, and climbing insurance costs, drivers are feeling the pressure from every angle. However, there are still ways to find value if you know where to look. Here’s why industry experts are confident that new car prices will reach this unfortunate milestone in 2025, and what car buyers can do to still come out on top.

New Car Price Trends Point In the Wrong Direction

According to the latest data from Cox Automotive, the average new car transaction price currently sits at $48,699, just shy of the December 2022 peak of $49,929. Car price inflation has been unstoppable since the COVID-19 pandemic. While prices cooled slightly at times in 2023 and 2024, two key developments are pushing them back up again:

1. 2026 model year pricing is arriving, and most prices are marching higher.

2. Tariffs on imported vehicles are beginning to trickle into pricing. Even American-made cars are being hit as global supply chains prove tough to adapt to the new trade landscape. In response, automakers like Subaru and Ford have already announced mid-year price hikes. We could see more sneaky price increases from other brands this summer.

It’s important to remember: the $50,000 figure is just an average. There are still dozens of new cars for sale under $30,000 in 2025, though the number is shrinking. The last new car under $20,000, the Nissan Versa, is being discontinued after this year. If you’re shopping with a tighter budget, check out our list of new cars under $25,000 in 2025.

Not all cars are getting more expensive in 2025. In fact, a few are seeing price cuts. Let’s take a look at where there’s wiggle room, and where prices continue to rise.

Which Cars Are Getting More Expensive in 2025?

Prices aren’t rising evenly across the market. In fact, some of the biggest increases are hitting the most budget-conscious buyers.

Prices are rising fastest for these cars:

• Cars under $35,000 are seeing noticeable hikes for the 2026 model year.

• Popular hybrids, especially from Toyota and Honda, are in high demand and are commanding a premium.

• Subaru just hiked prices anywhere from $1,000 to over $2,000 across its lineup.

• In general, affordable models are becoming… less affordable.

These cars are holding steady (for now):

• EVs, which remain slow to sell despite deep incentives, have seen more price cuts and fewer hikes. Models like the Hyundai Kona EV, Chevrolet Equinox EV, and Tesla Model 3 are available as extremely cheap leases this month.
  
• Vans and some pickup trucks are also holding the line for the most part, as automakers focus on keeping these models competitive. After all, trucks are high-margin profit makers for OEMs like GM, Ford, and Stellantis.

How to Save in a $50,000 Car Market

If you’re buying a car this summer, all hope is not lost. With inventory rising for certain brands and models, some cars and trucks are more negotiable than others. Our data tools make it easy to spot where the deals are. Check out CarEdge Pro to see how you can find the most negotiable new and used cars in your area. Ready for pros to take the wheel? Let us negotiate on your behalf to help you save thousands.

“This isn’t the time to walk into a dealership unprepared,” says Ray Shefska, Co-Founder of CarEdge. “Car prices are high, interest rates are brutal, and insurance isn’t letting up. But there are deals to be had if you know where to look — and how to negotiate. That’s what we help people do every day.”

It’s also important to remember that price is just one part of the equation. New car loan rates remain near 30-year highs, averaging around 9% APR, while used car loans hover around 14% APR. On top of that, auto insurance rates jumped 15% in 2024 and are still climbing. That’s why it’s essential to factor in the total cost of ownership, not just the sticker price. Use our free CarEdge cost of ownership tools to get the full picture before you buy.

We’ll be watching the market closely this summer and will keep you posted as prices continue to evolve. Hopefully we’re wrong, but all signs point to the $50,000 average becoming the new normal sometime in 2025.

We track new car prices monthly here →