The new vehicle trends taking place in the U.S.

New vehicle prices set a record in December south of the border as a heavier mix of midsize SUVs and full-size pickups lifted the average transaction price to $50,326, according to Kelley Blue Book estimates from Cox Automotive (all figures in U.S. dollars).

The December average was up 0.8 per cent from a year earlier and 1.1 per cent from November. The average manufacturer’s suggested retail price also hit a record at $52,627, up 1.2 per cent year over year. Incentives rose to 7.5 per cent of the average transaction price, the highest point in 2025, compared with 6.7 per cent in November, but still below December 2024 when incentives averaged 7.9 per cent of the transaction price.

Segment mix drove the gain. The midsize SUV category, which includes the Ford Explorer, Jeep Grand Cherokee and Toyota 4Runner, was the best-selling segment in December with a 16.8 per cent share, edging compact SUVs at 16.2 per cent for the first time in 2025.

Midsize SUVs carried an average transaction price of $49,144, while compact SUVs averaged $36,417. Full-size pickups also pushed the average higher. With more than 233,000 units sold, December was the segment’s best month in five years and the sixth best in the past decade.

The average price paid for a full-size pickup was $66,386, slightly below the October 2025 record. Combined retail and fleet revenue for full‑size pickups topped $15 billion for the first time.

“We typically see elevated prices in December, as the market delivers a strong mix of high-end and luxury vehicle sales,” said Erin Keating, executive analyst at Cox Automotive.  

Electric vehicles saw mixed pricing trends. The average price paid for a new EV in December was $58,034, up 2.4 per cent year over year but modestly lower than in November. EV incentives climbed to 18 per cent of the average transaction price, a record level that helped push monthly sales above 84,000 units, the best since government-backed sales incentives were revoked. The average price paid for a Tesla was $53,680, down 2.9 per cent year over year and lower than November, while incentives rose to 19.5 per cent, more than double year-earlier levels.

For 2025 as a whole, total U.S. EV sales were approximately 1.28 million units, about two per cent lower than 2024. Sales in the year ahead are expected to be mostly flat, supported in part by new model launches and continued improvements in charging infrastructure.

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