You may not have noticed, but car prices at this very moment are bad and getting worse. Between low incentives, high markups, and an increasing number of new vehicles that rely on tax credits to subsidize their cost, buyers are now paying more than ever for both new and used vehicles. So much more, in fact, that average new car prices have hit a new record high: Over $48,000.
The prior record came in December of 2021, when average prices hit $47,202. Now, according to Kelley Blue Book, the average buyer will have to shell out $48,043 for that shiny new automobile. To make matters worse, prices are still consistently above MSRP.
Kelley Blue Book attributes some of the price increase to the luxury market, as those purchases are taking up more and more of the new car market. But a delve into the data shows that nearly every single automotive category is up from both last month and last year. The only silver lining for Jalops is the High Performance Car category dropping 4.2% from May. Get your Porsche orders in now, while the iron is hot.
The biggest changes since last year came in the Van and Hybrid/Alternative Energy Car categories, the latter of which also saw the biggest spike year over year. It’s unfortunate to see the largest price jumps come in two of the most important automotive categories — work vehicles and eco-friendly commuters.
With supply chains still impacted by the pandemic, the chip shortage, and the faltering value of the U.S. dollar, it’s not likely that these prices will come down any time soon. If you’re wondering whether to fix your beater or finally send it off to that big parking lot in the sky, you may want to give the mechanic some serious thought.