South of the border, new-vehicle prices keep climbing and keep setting records. According to the latest daily data pulled from U.S. dealer websites, the average marketed price now stands at $53,013 US. That’s $477 more than a month ago and nearly $2,900 more than a year ago.
The average marketed price in the U.S. now sits at $53,013 US
Prices are up nearly 6% year over year
In Canada, prices are actually trending down
That’s a worrying picture.
An Upward Spiral
The Trump administration’s tariffs have a lot to do with it. Early on, many automakers chose to eat part of those costs rather than scare off customers. That generosity only goes so far, though. Little by little, the customers are paying the bill.
And once an MSRP goes up, it rarely comes back down.
What the Segments Tell Us
Interestingly, none of the key segments rose as quickly as the overall average. Midsize SUVs and crossovers ($40,760) and their luxury counterparts ($71,282) gained just under 4% over the past year. Meanwhile, full-size pickups ($60,764) and midsize sedans ($31,191) have barely moved. In other words, it’s not just that individual models cost more. Buyers are trading up to bigger, pricier vehicles.
Volkswagen recently told us that more than half of Atlas sales come from the top trim, which goes for over $60,000 in Canada.
Hyundai Drops the Plug-in Hybrid Version of the 2027 Tucson in North America
For buyers who want to keep both the sticker price and their fuel bill in check, the midsize sedan remains the smart buy, at roughly $22,000 below the average.
What about Canada? According to the AutoTrader Price Index, the average listed price of a new vehicle here was $63,016 CAD in June, down 2.2% year over year. The methodologies differ, but one thing is clear: for now, the two markets are heading in opposite directions.
One thing’s for sure: prices will have to level off at some point. Otherwise, the industry is headed for another major shock. And this time, not everyone will make it through.
