New-Vehicle Prices Remain Above $48,000

By Staff Writer November 10, 2022

The average price paid for a new vehicle in the United States in October 2022 was up from September and remains above the $48,000 mark, according to data released today by Kelley Blue Book, a Cox Automotive company.

The new-vehicle average transaction price (ATP) increased to $48,281 in October, slightly lower than the revised all-time high of $48,301 set in August. October 2022 prices rose 0.2% ($187) month over month from September and were up 3.8% ($1,775) year over year from October 2021.

According to Kelley Blue Book calculations, October marks a record 17th straight month that new-vehicle ATPs were higher than the average manufacturer's suggested retail price (MSRP), also known as the sticker price.

“The sales and transaction data from October clearly indicates that there are plenty of flush-with-cash buyers with strong credit still in the market and paying top dollar for new vehicles,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Automakers and dealers continue to hold back on incentives as well. In all, inventory is improving, but prices remain stubbornly high.”

According to Cox Automotive estimates, new-vehicle inventory is steadily improving, though some brands have a noticeably larger supply than others. “If consumers are flexible on make and model, it will be possible to find a good deal at year-end sales events,” added Rydzewski.

Strong luxury vehicle sales have been a primary reason for overall elevated new-vehicle prices. Luxury vehicle share remains historically high, slightly decreasing to 17.8% of total sales in October from 17.9% in September. The high share of luxury sales helps to push the overall industry ATP higher.

In October 2022, the average luxury buyer paid $66,645 for a new vehicle, up $331 from September when luxury ATPs reached $66,314. Buyers continue to pay more than MSRP for new luxury vehicles, although prices are trending closer to or below sticker prices in some luxury segments.

BMW and Porsche showed the most price strength in the luxury market, transacting between 3% to 5.5% over sticker price last month. Luxury brands Acura, Cadillac and Mercedes-Benz showed the least price strength, selling 1% or more below MSRP in October.

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Last modified on Tuesday, 15 November 2022 12:56