U.S. vehicle prices reached an average of $46,098 through August 2026 as manufacturers reduced compact SUV production due to tariff-related supply constraints while increasing deliveries of larger vehicles, creating a supply-demand mismatch that drove prices higher despite declining overall retail sales.
- Average transaction price increased to $46,098, up from $45,344 in the same period last year
- Compact car inventories dropped from 52 days of supply in January to 36 days in August
- Compact SUV inventories fell from 54 days to 44 days due to tariff-related production cuts
- Vehicle mix changes added $172 to average transaction prices as manufacturers shifted toward larger, more profitable models
- Retail sales declined to 8.8 million vehicles from 9.2 million, while average incentive spending rose to $3,300 per vehicle
New-vehicle prices in the United States have risen as manufacturers increased deliveries of larger vehicles and reduced supplies of compact SUVs.
Through August, the average customer-facing transaction price reached US$46,098, up from US$45,344 during the same period in 2025. Retail sales totalled 8.8 million vehicles, compared with 9.2 million a year earlier.
Tyson Jominy, senior vice-president of OEM customer success at J.D. Power, and Srini Rajagopalan, vice-president of OEM customer success, published the figures in their Sept. 30 Automotive OEM Intelligence Report.
Manufacturers increased deliveries of large SUVs, large light-duty pickups, midsize SUVs and midsize cars. They reduced compact SUV production amid tariff-related supply constraints. Changes in the mix of vehicles sold added US$172 to the average transaction price.
“Higher fuel prices have boosted demand for smaller, more fuel-efficient vehicles while, at the same time, OEMs have reduced deliveries in those segments,” Jominy and Rajagopalan wrote.
Compact-car inventories declined from 52 days of supply in January to 36 days in August. Compact SUV inventories fell from 54 days to 44 days over the same period.
Models with fewer than 30 days of supply accounted for 21 per cent of retail sales, compared with 17 per cent in 2025 and two per cent in 2019. Models with more than 120 days of supply accounted for five per cent of sales, up from three per cent a year earlier.
Average incentive spending increased to approximately US$3,300 per vehicle, from US$3,000 during the same period in 2025. Total consumer spending on new vehicles declined to US$388.2 billion from US$396.4 billion.
“While expanded availability of smaller, more fuel-efficient vehicles would likely drive added unit sales, it is less clear if that would boost OEM profitability,” the authors wrote.
In Canada, collision claim costs and vehicle composition vary by province. In Alberta, average collision claim severity increased approximately 46.9 per cent between 2021 and 2025, while claim frequency declined 7.4 per cent, according to figures published by the Alberta Automobile Insurance Rate Board in its 2026 annual market report. Claim severity measures the average cost per claim.
For Alberta electric vehicles, average collision claim severity was approximately $15,353 in 2025, compared with $12,005 for hybrids and $9,526 for non-EVs. Weighted average depreciated vehicle values were $75,296, $53,725 and $29,281 respectively. These figures cover insurance claims rather than repair invoices alone.
Trucks accounted for 21.7 per cent of vehicles in Alberta, compared with 19.1 per cent in Atlantic Canada and 11.8 per cent in Ontario. Hybrids and EVs together accounted for 3.9 per cent of Alberta’s fleet, 4.2 per cent in Atlantic Canada and 6.8 per cent in Ontario.
