Tariffs, Incentive Cuts and Luxury Imports Push April New-Vehicle Prices Higher

In April 2025, U.S. new-vehicle prices surged to an average transaction price of $48,699, marking a 2.5% increase from March. This spike, one of the sharpest in over a decade, is attributed to the Trump administration's 25% tariffs on imported vehicles, reduced manufacturer incentives, and a rise in luxury imports. Dealers experienced record sales, particularly for imported brands, as consumers rushed to purchase vehicles ahead of anticipated price hikes.