Tariffs Increase New Car Costs in April – Remarketing

New-vehicle ATP elevated in April to $48,699, a pointy 2.5% month-over-month bump, in line with Kelley Blue Guide report launched Could 12. 

April sometimes delivers a month-to-month improve of 1.1%. Prior to now decade, solely April 2020 produced a bigger month-over-month improve, at 2.7%.

Different Key takeaways from the April report embrace:

• New-vehicle costs in April had been greater yr over yr by 1.1%, a rise under long-term averages however greater than in latest months. Over the long run, new-vehicle costs sometimes rise greater than 3% yr over yr, in line with Kelley Blue Guide estimates. Since April 2023, nevertheless, as new-vehicle stock recovered from the COVID-era scarcity, new-vehicle costs have been largely flat yr over yr.
• The new-vehicle gross sales tempo in April was 17.3 million. The gross sales tempo was decrease than March however the strongest April since 2021. Amid the shopping for frenzy, new-vehicle gross sales incentives fell to six.7% of ATP, down from 7% in March and on the lowest level for the reason that summer season of 2024. Earlier than April, the six-month common was 7.4% of ATP.
• The Compact SUV section, one of the vital fashionable segments and extremely uncovered to new import tariffs, noticed car costs that had been largely flat month-to-month and yr over yr at $36,416. Incentives and reductions declined in April to 7.8% of ATP, down from 8.2% in March. Since April 2024, incentives within the Compact SUV section have averaged 9.1% of ATP. Equally, April transaction costs held largely regular month-to-month within the subcompact SUV section, however incentives additionally declined.
• Amongst core quantity manufacturers, the leads to April had been blended. Audi, Land Rover and Volvo noticed greater ATPs and decrease incentives than March. Three Basic Motors manufacturers – Cadillac, Chevrolet and GMC – additionally posted greater ATPs, with little change to incentives. Buick noticed decrease costs and better incentives in April. Acura and BMW additionally held costs decrease and elevated incentive spending in comparison with March.
• Gross sales of Porsche and Land Rover fashions accelerated in April, as each manufacturers face greater future prices since 100% of their respective automobiles are imported. ATPs for Porsche led the business final month at above $114,000, with Land Rover simply behind at $113,000. April was the very best gross sales month in 2025 for each manufacturers, pushing the general business ATP greater.
• In April, Ford marketed closely on a message of “holding costs regular” and celebrated its “inbuilt America” management. Ford’s model costs and incentives in April primarily had been unchanged in comparison with March, in line with Kelley Blue Guide knowledge. One standout: The favored, Mexico-built Maverick pickup truck noticed decrease costs in April, and incentive spending elevated to an all-time excessive of 6.6% of ATP. Gross sales had been sturdy: A document 20,183 had been bought in April.

“Ever since President Trump introduced auto tariffs 47 days in the past, the price of new automobiles has steadily climbed,” stated Erin Keaing, an govt analyst with Cox Automotive, in a information launch. “Though there was a surge in buying and gross sales early on, the producer’s prompt retail costs haven’t budged. The pricing panorama varies relying on the automaker, automobile section, and particular fashions – some are slicing incentives, others are in excessive demand, and the availability isn’t evenly distributed throughout the board.”

Electrical Car Costs Attain Highest Level of 12 months in April, Incentive Decline Additional

The Kelley Blue Guide staff initially estimates new EV costs in April to be $59,255, greater yr over yr by 3.7% and better than March by 0.2%. The March EV ATP was revised decrease to $59,132.