Americans paid an average of $49,855 for a new car in July, the highest figure so far this year.
That's up 0.2 percent from June and 1.9 percent from July 2025, according to Cox Automotive and Kelley Blue Book data.
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The average MSRP stood at $51,621, meaning buyers paid about 96.6 percent of sticker price.
July typically brings a slight monthly decline, but this year prices bucked the trend.
Incentives shrink as inventory tightens
Automaker spending on incentives fell to $3,192 per vehicle, equivalent to 6.4 percent of the average transaction price.
That's down from 7 percent in June and 7.3 percent a year ago, marking the second consecutive monthly decline.
Available supply stood at 2.73 million vehicles heading into August, 3.5 percent below the previous month.
Days' supply dropped from 82 to 75, as buyers took vehicles home faster than manufacturers could replace them.
Brands with the biggest price jumps
Stellantis saw its average transaction price reach $58,423, an 11 percent increase from last July.
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Jeep alone was up 10 percent, while Lincoln jumped 13 percent to $77,714.
Porsche rose 8.8 percent to a steep $129,423, according to KBB.
Shoppers are increasingly gravitating toward cheaper categories, helping prevent the industry average from climbing even faster.
Compact cars averaged $27,904, while subcompact SUVs came in at $31,052.
EV shoppers aren't escaping either, with average transaction prices rising to $56,126.
Electric vehicle incentives dropped 24 percent from last year to $6,626, and Tesla's incentives fell nearly 34 percent year over year.
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All of which means you're going to have to bring your best negotiating game to come away with much of a bargain this summer.
