Average new car transaction price hits a record $45,031

AutoBlog ^ | 10/14/2021 | JEREMY KORZENIEWSKI

[SeekAndFind]

The average transaction price for a new vehicle in America hit a record of $45,031 in September. It's the sixth consecutive month of record vehicle prices, according to Kelley Blue Book. That price represents a 12.1% increase (or $4,872 in cold, hard cash) over the same month a year ago and a 3.7% increase over the prior month.

(The federal government, meanwhile, calculates new-car prices are up 8.7% year over year.)

The reasons for the rapidly increasing prices of new vehicles are well documented, with inventory shortages caused by a lack of microchip availability cited as the latest problem. Last month, however, consumer buying preferences were also to blame; KBB reports that "the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market."

"Midsize SUV sales jumped in September compared to August and full-size pickup share moved up as well,"  Kayla Reynolds, analyst for Cox Automotive, said in a statement. "Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated."

KBB says its transaction price data do not include consumer incentives, but also reports that incentive spending by automakers is similarly at record low levels. In fact, at an average of 5.2% of the transaction price, it's just over half the size of the average incentive from September of last year.

Here's the full chart from KBB:

[Bikkuri]

Are they trying to put the cars/trucks outside of the majority’s price range?

[SeekAndFind]

Dwindling sales are likely a function of two things, a worldwide shortage of microchips that have shuttered many automobile factors and possibly higher prices are creating demand destruction among buyers. Over the last year, dealership inventories have been tight due to supply chain difficulties and forced dealers to reduce incentives and discounts to prospective car buyers. Incentives were only 5.2% of the average transaction price last month, compared with 10% a year ago. Another issue for buyers is the staggering increase in used cars, which hit a record high last month.

Fewer cars were sold last month, but prices continue to hit record highs that may suggest consumers are becoming discouraged to buy because of affordability issues.

[MrLucky1966]

Maybe we need to bring back the Yugo. B-P

[Attention Surplus Disorder]

My nephew just bought a MBZ 300C lease turn-in with about 40K mi for $25K. I thought that was a screaming deal.

[dainbramaged]

My first new vehicle was a 1976 F150 Ford 4x4 pickup - sticker price was around $6600.

[dragnet2]

$45,000 for a car? With what is left of the economy, they won’t be selling too many much longer.

[Covenantor]

Well that explains the zero used cars on the lots of a very large multi marque local dealer this past month. Usually 30-40 trade-ins for sale. They’ve moved all the new cars to the street frontage. But their new car sales are brisk.

[Blue Highway]

1983 Yugo - $3999

2023 Yugo - $39999

[NorseViking]

The less people are buying the more dealerships try to shake down from the fewer paying customers to compensate their running costs.

[MrLucky1966]

1983 Yugo - $3999

2023 Yugo - $39999

LOL!!!!!!! As bad as the Communist countries were, I do admit I have a guilty admiration for some of their automobiles. They were simple to fix, run and so on. No frills, I know but if you just want bare bones basic transportation, they can't be beat. I had a co-worker from Poland. Her uncle still lives there and maintains the old system made better cars but that's the only good thing they did. He bought a Polski Fiat type in 1964 and still drives it today. He bought it and painted the underside with tar to keep the frame from rusting.

There was an old joke from the USSR and Eastern Europe. It went like something like this. "Yuri, I just bought a new Lada last week and one day it did not start and I had to fix it." Mikhail replied to Yuri, "Yeah, that's true, but at least you were able to fix it."

I remember in the early 1970's where they showed the VW Beetle in commercials for the low price of $2999.

I remember then we had the Chevy Vegas, Ford Pintos and Mavericks and my Aunt had a 1971/72 Plymouth Cricket. It was made in the UK, over there it was the Hillman Avenger. I was 6 at the time and thought the Cricket was the coolest car ever made. When my uncle rolled it in an accident and totaled it, I cried my eyes out. It was a neat car but no more.

[TrumpForeva]

Lease

[JD_UTDallas]

Inflation Calculator

If in 1976(enter year) I purchased an item for $6,600.00

then in 2021(enter year)that same item would cost:$31,818.03

Cumulative rate of inflation:
382.1%

[Reno89519]

Okay, at 5% for 10 years still makes the payment $477. Ouch.

[SaxxonWoods]

Okay, at 5% for 10 years still makes the payment $477. Ouch.

Americans waste more money on cars than any other product. Never buy a depreciating asset using financing. My rule was and still is, if I can’t pay cash for a car, I can’t afford it. I lived by that rule for 30 years and now I can afford any car I want. But I like my 12 year old truck so I still drive it. I bought the wife a new car.

[WinMod70]

“The less people are buying the more dealerships try to shake down from the fewer paying customers to compensate their running costs.”

Yes, just heard of dealer adding $10K to the sticker price. The addition amount being described as “market adjustment”.

I expect within a year the used lots will be full of repo units.

[NorseViking]

Sure, it won’t last forever. Hyperinflation is another possible outcome.

[Fresh Wind]

I was at a dealership yesterday for routine service.

The parking lot, which used to be full, was half empty but most surprisingly, EVERY car in the showroom was used.

Never saw that before.

[jughandle]

Any time I “built” a new pickup or Suburban online it was at least $65,000.

[ronnie raygun]

They want you on bicycles like china