When the Trump Administration began imposing tariffs on automotive parts and finished vehicles this Spring, many feared sticker prices would soar—perhaps by thousands and even into five-figure territory. That wave never came. Outside a brief rise in March and April, prices held steady throughout the summer and early fall.
In the early months of the tariff era, OEMs such as General Motors absorbed much of the added cost rather than pushing it onto consumers, sacrificing margin to preserve demand. But with tariff impacts that are expected to accelerate in late 2025 and into 2026, manufacturers have become more calculated in how they are managing pricing. The Average Marketed Price may look stable, but the underlying dynamics tell a different story—one of quietly rising prices now and more visible increases ahead as model year changeovers mature.
A six-month comparison of inventory shows a clear pivot toward lower-priced segments and away from higher-ticket full-size trucks and luxury vehicles. Of the seven segments with notable inventory growth, five sit well below the $50,000 mark. Midsize SUVs alone added 75,000 units of supply at an average price point of $37,775. If April’s segment mix had held through October, today’s Average Marketed Price would be $851 higher.
While that’s far from the massive jumps some predicted, it still represents a real squeeze on consumers—especially given how significantly vehicle prices have climbed over the past five years. And more pressure is coming.
In November 2024, the average price increase from the 2024 to 2025 model year transition was just $131. This year, as 2026 models roll out, the average jump is $983. And with nearly half of current inventory still representing the 2025 model year, the impact of these steeper MYCO adjustments hasn’t fully hit the market yet.
Taken together, these trends suggest that today’s “stable” pricing environment doesn’t tell the full story. OEMs are leaning on segment mix shifts to keep overall average prices in check, even as underlying costs rise and model-year transitions bring higher MSRPs. As these factors continue to build, consumers will feel their buying power gradually compressed, and the true cost of a new vehicle will become clearer in the months ahead. The market may look calm for now, but the next phase of price pressure is already taking shape.