Americans Are Purchasing Cars as if It’s Black Friday Ahead of Tariffs | Carscoops

      Average transaction prices rose in March, with data indicating that 1.59 million vehicles were sold during the month.

      In March, the average transaction price (ATP) for all new cars in the US reached $47,462.

      Notably, the average ATP for new electric vehicles (EVs) last month was significantly higher at $59,205.

      ATPs for brands such as Land Rover, Lincoln, and Mitsubishi have increased substantially.

      Car buyers seeking relief may find it brief. Although vehicle prices are generally anticipated to rise due to the new tariff policy from the Trump administration, March saw a momentary dip. Both new and used car prices fell slightly from February, averaging less than 1% higher than in March 2024.

      This provides a short-term advantage for shoppers, but it may not be sustainable. Once dealers deplete their pre-tariff stocks, the market is expected to adjust accordingly.

      According to data from Cox Automotive, the average monthly transaction price for new vehicles in the US last month was $47,462, showing a slight decrease from February's $47,577. Interestingly, the price gap between internal combustion engine (ICE) models and EVs has widened recently, even though EVs are expected to reach price parity.

      EV Prices on the Rise

      The average ATP for new EVs in March was estimated at $59,205, representing a 7% increase from the previous year and up from $57,015 in February. This rise is partially attributed to increasing Tesla prices, with their ATP estimated at $54,582, marking a 3.5% increase year-over-year and a 4.5% rise from February.

      Average transaction prices for other brands also saw increases. For example, Land Rover’s ATP reached $107,129 in March, an 8.8% rise from February's $98,478, and a 6.1% increase year-over-year. Lincoln's and Mitsubishi's ATPs also rose by 4.7% and 4.3% month-over-month, reaching $68,281 and $31,692, respectively.

      Not All Prices Are Rising

      Some automakers recorded lower ATPs in March. For instance, Cadillac's ATP dropped by 5% to $74,078, while Jaguar saw a 5.8% decline to $64,403. Additionally, Dodge and Infiniti experienced decreases of 2.6%, with ATPs falling to $49,548 and $62,276, respectively.

      Data from Cox Automotive further indicates that total market sales increased notably in March, even as prices and incentives largely remained stable. It estimates that 1.59 million new vehicles were sold last month in the US, which would be the highest sales volume month in nearly four years, representing a 30% increase from February.

      The reasoning is straightforward. Many car shoppers have been hurrying to purchase a new vehicle before tariffs lead to price hikes throughout the market.

      “All signs indicate higher prices this summer as existing ‘pre-tariff’ inventory is sold off to be eventually replaced with inventory affected by tariffs,” stated Erin Keating, executive analyst at Cox. “How much prices will increase for consumers is still uncertain, as each automaker will tackle the pricing challenge differently. If the current stance from the White House remains, our team anticipates that new vehicles directly impacted by the 25% tariff could see price increases ranging from 10% to 15%.”