The average transaction price of a new vehicle in the U.S. hit a record high in December at $49,507, an increase of 1.9% ($927) from November and up 4.9% ($2,297) from year-earlier levels. New-vehicle inventory levels are increasing from historic lows earlier in 2022, but prices remain elevated, according to data released today by Kelley Blue Book, a Cox Automotive company.

According to calculations, new-vehicle ATPs have been above the average manufacturer’s suggested retail price, also known as the sticker price, for more than a year. Sales volumes in December were up year over year by more than 5% but down from November, thanks in part to improved supply. Elevated prices and high loan rates are putting downward pressure on sales.

“The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.”

According to Cox Automotive estimates, new-vehicle inventory is steadily improving, though some brands have a noticeably larger supply than others.

 Average Non-Luxury Car Prices Increase to Record High

The average price paid for a new non-luxury vehicle in December was $45,578—a record high and up $994 month over month. The previous record high was in August 2022. Truck sales were particularly strong in December, over 270,000 sold for the first time since the spring of 2021, and the average price paid for a new truck was over $59,000.

New Vehicle Average Transaction Price

Luxury Share Hits Record High, While Average Prices Fall in December

For most of 2022, strong luxury vehicle sales have been a primary reason for overall elevated new-vehicle prices.

In December 2022, the average luxury buyer paid $66,660 for a new vehicle, down $216 from November. Buyers continue to pay over MSRP for new luxury vehicles, but not by much. Luxury cars at all levels were selling below MSRP in December, along with luxury compact and sub-compact SUVs.