Average Transaction Prices Top $48,000

By Staff Writer August 11, 2022

The average price paid for a new vehicle in the U.S. in July 2022 topped June's record and kept the average transaction price (ATP) solidly above the $48,000 mark, according to new data released today by Kelley Blue Book, a Cox Automotive brand.

The Kelley Blue Book new-vehicle ATP increased to $48,182 in July 2022, beating the previous high of $48,043 set last month. July prices rose 0.3% ($139) from June 2022 and 11.9% ($5,126) from July 2021.

New-vehicle inventory days' supply held steady in the mid-30s in July, where it has been consistently since the final months of 2021. Day’s supply the end of July was 27% higher than it was in 2021, when inventory shortages first started to impact the market, demand was even higher, and days' supply dropped into the 20s. Still, with roughly 1.1 million units in inventory in the U.S., new-vehicle inventory remains significantly below levels seen in 2020 and 2019. 

With tight inventory and sufficient demand, transaction prices remain elevated. Most dealers continue to sell vehicles above the manufacturer's suggested retail price (MSRP). Honda, Kia, Land Rover, and Hyundai continue to show the most price strength in the market, transacting between 5% to 8% over sticker last month. Ram, Volvo, Lincoln, Buick, and the smaller Italian brands, Alfa Romeo and Fiat, showed the least price strength last month, selling 1% or more below MSRP.

"It's still a sellers' market," said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. "New-vehicle inventory levels are better than a year ago, but remain historically low, and that's keeping new-vehicle prices elevated. Still, even though average prices are at a record level, there are affordable vehicles out there. Compact cars and SUVs and subcompact models typically transact for 30% to 40% below the industry average."

The average price paid for a new electric vehicle (EV) dropped in July by 2.3% compared to June but increased by 18.8% versus a year ago. The average price for a new electric vehicle – over $66,000, according to Kelley Blue Book estimates – remains well above the industry average and more aligned with luxury prices versus mainstream prices.

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Last modified on Friday, 12 August 2022 14:19