It’s not a secret that prices in the new and used car markets are going up, and there are a number of factors that contribute to this trend. We won’t go into deep details, though we need to at least mention the ongoing coronavirus pandemic, chip shortage, production disruptions, and financial inflation. All these negative circumstances lead to very high prices, and a new report indicates we may have reached new record levels.
Kelley Blue Book reports the average new car price in the United States in September this year was $45,031, which marks the first time in history the average transaction price has crossed the $45,000 mark. From a different perspective, this was the sixth consecutive month of record-high prices in the country, Kelley Blue Book explains.
While sales in September were down 7.3 percent compared to August, the nature of the market meant the average prices continued going up. The customers kept buying mostly large and expensive SUVs and trucks, which kept the average prices high.
“The record-high prices in September are mostly a result of the mix of vehicles sold,” Kayla Reynolds, an analyst at Cox Automotive, comments. “Midsize SUV sales jumped in September compared to August, and full-size pickup share moved up as well. Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September.”
If we take a retrospective look at the average new car prices, the value for September 2021 represents a major $11,000 jump over the average price in December 2016. A report from CarBuzz from almost five years ago shows the average new car price back then was $34,077, which in turn was 12.6 percent more than the value five years before that. It turns out the very same market trends dictated the increased prices some five years ago.