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At Holman Drive, Ed Powell outlines why fleets should brace for another turbulent year, with rising repair costs, strengthening used values, and a shifting tech landscape that will affect budgets and planning through 2026 and beyond.
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The decline in the average transaction price was mostly expected, as sales of expensive EVs fell sharply as government incentives expired Sept. 30.
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EV buyers took advantage of the final federal tax credit days, while average prices edged up for new EVs and continued to decline for used models.
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Average transaction prices broke the $50,000 barrier, driven by wealthier buyers and higher-end vehicles.
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Consumers are buying up electric vehicles ahead of the Inflation Reduction Act’s tax credit expiration amid strong demand and tight inventory.
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Of 31 major brands tracked by Kelley Blue Book, only five recorded transaction prices in August lower than year-ago levels.
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Commentary: The average price of a new vehicle in the U.S. is expected to break the $50,000 barrier in 2025, as automakers begin to pass along tariff costs and the market sells a larger share of higher-end vehicles.
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Many imported luxury vehicles tangle with tariffs, and other premium brands reposition product portfolios for higher revenue.
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Enough vehicles are sitting on lots as vehicle days’ supply hovers above last year’s levels, and sales volume lingers well below available inventory.
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Wholesale appreciation trends have been more volatile over Q2 as tariffs affected new sales and supply, and the used marketplace.
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