Home » Regular new vehicle selling prices are close to $50,000 as inventory shortages drag on

Regular new vehicle selling prices are close to $50,000 as inventory shortages drag on

Average new car prices are close to $50,000 as inventory shortages drag on

Inventories are mainly nonexistent.

MediaNews Team/Orange County Sign up/Getty Visuals

New motor vehicle charges proceed to surge as consumer desire stays superior — and automakers contend with reduced inventory levels. According to the latest data from Kelley Blue Reserve, the average price tag motor vehicle customers compensated for a new car strike a history of $47,077 in December 2021. That determine is up $5,742 year-above-yr and grew thirty day period-more than-thirty day period by $808 as opposed to November 2021.

With these minimal supply, dealers go on to sell new cars and trucks at or nicely previously mentioned the manufacturer’s recommended retail cost, which lends to the inflated new auto price ranges. Having said that, KBB explained the around-$50,000 determine is also owing to December’s exceptionally robust luxurious automobile profits: It’s not unheard of for luxury car gross sales to tick up at year’s conclude. Throughout the last month of 2021, 18.4% of all motor vehicles sold arrived from luxury brands the regular value a purchaser paid out for a luxury automobile sits at $64,864. December revenue also snapped a 6-month decrease in the gross sales tempo, according to KBB, because of to individuals luxurious autos.

Now, getting luxurious autos out of the equation, the typical value of a new car is however an absurd $43,072. KBB knowledge confirmed the regular value is down in comparison to November 2021 information, but it remains $900 above MSRP. In the previous six months of 2021, the ordinary price prospective buyers compensated was also previously mentioned a car’s MSRP. 

All of this cost inflation arrives as the tempo of new automobile profits continues to be incredibly sluggish: Dealers and automakers usually are not promoting almost as numerous cars as they’re utilized to, but revenue margins are wholesome thanks to the inflated selling prices.

Now actively playing:
Check out this:

When you really should buy a new motor vehicle as a substitute of restoring yours