According to data from Kelley Blue Book, the average transaction price for a new car in July was $48,841, up 1.5% from July 2024. The transaction price is the buyer’s end price, including additional features, options and required fees like destination charges. It differs from the manufacturer’s suggested retail price, or MSRP.

Why doesn’t it look like car prices are rising dramatically? As they say about relationships: It’s complicated.

Many automakers are absorbing the additional cost brought by tariffs to lessen the sticker shock, but that can’t go on forever. Many manufacturers and dealerships have existing inventory built and shipped pre-tariff, so the impact has been minimal — so far.

Automakers and dealerships can disguise price increases.

When a car sits on your local car lot, t

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