February 25, 2024

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Average new car prices hit a record high in November

Average new car prices hit a record high in November

2023 Kia Telluride

picture: Kia

In general, you can expect an average price New cars are increasing year on year. that happens. We are used to it. Then COVID hit, Disruption of global supply chainsAnd the It caused a shortage of chips, and send car prices through the roof. with Fewer new cars to buy, people are starting to pay more for used cars, and anyone who wants a new car has to pay a huge premium. Now, nearly three years later, the average new car price is the highest it has ever been.

Kelly Blue Book reports that – that, According to data from Cox Automotive, the average new car price in November was $48,681. Which is crazy when you think about how many people in this country don’t make that much money in a year.

But maybe that number doesn’t really reflect the typical experience of new car buyers. Sure, the rich who can afford six-figure luxury cars to park in the homes of the rich in their predominantly affluent suburbs skew the data. If you just remove the S-Classes and Model S Plaids from the data, the average price would drop significantly, right?

Wrong – wronged – wronged. According to Cox data, the average price for a new luxury car was $67,050 in November. But the average mainstream vehicle still costs $44,584. Is that less than $67,000? naturally he is. But does it make buying a new car seem more affordable? of course not.

The only good news is that people who buy new, non-luxury cars can finally get relatively close to them to MSRP now. Last month, Cox says, the average dealer price was just $410. This is better than it was. But still not cool.

If you’re hoping to avoid paying the above sticker, Cox says to avoid Honda and Kia dealerships. These brands reportedly sold an average of six percent and eight percent above MSRP, respectively. Instead, look at the Buick, which is often sold at a discount.

However, just because you’ve found a dealer who is willing to sell you a new car without a huge markup, doesn’t mean that the cars they’ll get on the lot will be in your price range. With so many chips available, automakers are said to be choosing to focus on building higher tiers to increase profits. So the fact that the rule-Technically the model is It does not guarantee that you will actually be able to find one at your local dealer.

At some point, automakers will get back to a point where they can build more cars, hopefully at new car prices Back to something like pre-COVID normal. In the end. we hope. It won’t be this year. For the foreseeable future, new cars will only be for the rich.

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