Average New-Car Prices in U.S. Top $36,000

The average selling price of a new passenger vehicle in the U.S. climbed 3% to more than $36,000 last year, according to Kelley Blue Book.

KBB says the increase was driven by federal tax reform, low unemployment, a richer mix of SUV/crossovers and a surge in sales of Tesla Inc.’s $44,000 Model 3 electric sedan.

Average transaction prices by manufacturer last year ranged from $29,300 for Honda to $42,300 for Volkswagen Group (which includes Audi and Porsche). KKB says all three of the traditional domestic brands posted averages above $40,000 for the year, topped by General Motors at $40,900.