New-vehicle prices increased further into record territory in November, including a modest increase from the month prior, according to new data released Dec. 10 by Kelley Blue Book.
Average transaction prices (ATPs) are sharply elevated from last year, up more than 13% from November 2020. New-vehicle inventory levels remain tight, and with sufficient consumer demand, dealers have been able to hold prices at or above the manufacturer’s suggested retail price (MSRP). In recent research from Cox Automotive, nearly 70% of franchised dealers indicated their new-vehicle prices are higher than pre-pandemic levels.
“High prices and limited choices likely are keeping many car buyers on the sidelines,” said Kayla Reynolds, analyst for Cox Automotive, in a news release. “It’s still a seller’s market, and we don’t expect things to change anytime soon. However, with high prices being the norm right now for both new and used vehicles, that means trade-in values are very favorable and can help soften the blow for consumers as they purchase their next vehicle.”
The average price paid for a new non-luxury vehicle last month was $43,144 US, a record high and more than $900 over sticker. For each of the last six months, the average price paid by consumers was above the MSRP.
Source: Automotive Fleet