Both new and used car prices have been consistently on the rise in the United States over the past few years, but new data has revealed that the average price that Americans paid for a new vehicle last month was largely stable from where it was one year ago.
Data from Kelley Blue Book reveals that the average transaction price (ATP) of a new vehicle in August was $48,451. Although this is a small $286 (0.6%) increase from July, it is just $42 higher than the ATP in August 2022.
Read: Average Transaction Prices Rose In June By 0.3% But So Did Wages
Cox Automotive notes that the ATP for a non-luxury vehicle in August was $44,827. This is a $169 fall from July and just a 0.7% increase from August 2022. The ATP of compact cars, subcompact cars, and subcompact SUVs were all sitting below $30,000 last month. Not only have ATPs of non-luxury cars remained relatively steady but the ATPs of luxury vehicles are actually down 3.3% year over year to $64,107.
A key reason for the falling ATPs of new luxury vehicles in the United States are the aggressive pricing cuts that Tesla made at the start of the year. In fact, Tesla ATPs are down 19.5% from where they were in August 2022. Reduced prices have also contributed to an increase in luxury vehicles with data revealing that sales were up 23% in August compared to the same month last year.
“After a tumultuous last few years in the automotive marketplace, now we are seeing new-vehicle pricing trends hold steady,” Cox Automotive research manager Rebecca Rydzewski said. “Dealers and automakers are feeling price pressure, and with high auto loan rates and growing inventory levels, new-vehicle prices seem to have hit a ceiling, at least for now. The very real potential for a UAW strike may impact some product lines, but with the current inventory levels in place, we don’t expect a short-lived strike to impact consumer prices in any meaningful way, at least in the near term.”
The prices of new EVs also continue to fall in the U.S. with the ATPs plummeting from over $65,000 last year to $53,376 in August. Again, this is thanks in no small part to Tesla and its price reductions.
