US new vehicle prices jumped by 2.5% in April, the most in five years
The last month-over-month increase greater than April 2025 was April 2020, roughly one month into the pandemic.
Well, that was fast.
According to a new report by Cox Automotive, new vehicle prices climbed 2.5% in April from the previous month. That’s the biggest jump in five years, since April 2020.
As of April, a new car will set Americans back $48,699 on average — the highest rate of 2025 so far. Average transaction prices climbed by about $1,500 from March for vehicles from General Motors and Tesla. Ford’s new vehicle prices rose by more than $600.
“Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing. Even though there was a surge in shopping and sales early on, the manufacturer’s suggested retail prices haven’t budged,” Cox Automotive Executive Analyst Erin Keating said.
The rise in an automaker’s average transaction price follows a surge in panic buying from US consumers for both new and used vehicles. GM’s US sales jumped 17% in the first quarter, while Carvana sold 46% more used cars in the same period.
Panic buying appears to have been better for some brands than others. Placer.ai data shows that foot traffic at US dealerships rose slightly for a few weeks in March before falling again throughout April.
Car prices — along with everything else — will be in focus when the Bureau of Labor Statistics releases the April CPI inflation report at 8:30 a.m. ET this morning. Economists expect core CPI to rise 0.3% month-on-month compared to a 0.1% bump in March.
