Average New Car Price Topped $46K In November 2021
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The average transaction price of a new car, truck, crossover or SUV topped $46,000 in November as vehicle prices continued to rise across the country.
According to Kelley Blue Book, the average transaction price of a new car last month stood at $46,329, which was up $393, or 0.7 percent, from October. While the month-to-month change from October to November was minuscule, November’s ATPs were up $5,392 from this time last year – representing an increase of 13 percent year-over-year.
Last month marked the eighth straight month of rising new vehicle ATPs and represented the worst month for vehicle affordability since Cox Automotive/Moody’s Analytics began consistently tracking this information in 2012. The estimated typical monthly payment of a new vehicle also rose to a new record high at $687 – up 20.7 percent year over year.
KBB says “every factor moved against affordability in November,” as new vehicle incentives dried up almost entirely, interest rates moved to their highest level since June and the median income of American citizens fell by 0.1 percent.
The majority of new car shoppers are now paying over sticker price, as well. KBB says the average buyer of a mass-market vehicle paid $900 over MSRP, while luxury vehicle buyers paid an average of $1,000 above sticker. At this time last year, most luxury vehicles were selling for an average of around $3,000 under MSRP.
Rising vehicle prices are mostly attributed to the microchip shortage, but there’s more to this story than limited inventory resulting in high demand. KBB says automakers are using the limited supply of microchips they do have to build higher-margin vehicles, so expensive trucks and SUVs are outnumbering inexpensive passenger cars and crossovers on most lots. This is keeping “many buyers on the sidelines,” Cox Automotive analyst Kayla Reynolds says, but for automakers like General Motors, lower sales are being offset by stronger profit margins
Reynolds says her firm does not expect vehicle prices or supply chain problems to dissipate “anytime soon,” and therefore expects prices to remain elevated for the foreseeable future.
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Terrible trend to be setting. Vehicles have gotten outrageously priced.
Totally agree who can afford anything these days manufacturers think consumers have trees in there backyard that they can go pick $100 dollars bills from at any giving time to go buy over priced vehicles !
I can already get 110 % of my purchase price back on my 2021 Chevy HD truck I bought last spring ,Just crazy how much the value shot up on low mileage late model trucks