NATIONWIDE — Customers in the market for a new car continue to suffer from sticker shock. The average transaction price for a new vehicle sold in July reached an all-time high of $48,182, according to Kelley Blue Book. It was the third month in a row that new vehicle price records were broken. In June, the average new vehicle transaction price topped $48,000 for the first time.
The increase comes as manufacturers continue to struggle with a computer chip shortage, constraining the supply of new vehicles. Honda, Kia, Land Rover and Hyundai are among the brands that are selling for 5% to 8% more than the manufacturer’s suggested retail price.
“It’s still a seller’s 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.”
The average transaction price for a new non-luxury vehicle in July was $44,431 — a $363 increase compared with June. The average transaction price for a new luxury vehicle was $65,530 — a $382 decrease from a month earlier — while the average price for a new electric vehicle is now more than $66,000.
Used car prices are also trending higher. They increased 10.9%, or $3,364, in July compared with a year earlier, according to iSeeCars.com. The price increases are driven largely by demand for used alternative fuel vehicles. Prices for used electric vehicles in July were up 56.7% compared with a year earlier, while prices for hybrids were up 30.5%.
A used Nissan Leaf experienced the greatest year-over-year increase in July; prices were up 43.8%, or $8,563, compared with 2021. The Hyundai Sonata Hybrid, Toyota Prius, Toyota Prius Prime and Toyota Avalon Hybrid rounded out the top five used cars that increased the most in price last month.
While pickup trucks saw the smallest price changes in July, five used vehicles actually decreased in cost. A used Nissan Armada SUV decreased 7.4%, or $3,022, compared with a year earlier. The Chevrolet Camaro, Nissan Titan, Nissan Titan XD and Infiniti QX60 rounded out the list of used cars that decreased in price last month.
The vehicle price news comes as the U.S. Bureau of Labor Statistics reported an 8.5% increase in the Consumer Price Index in July, compared with a 9.1% increase in June. The slowing inflation rate is largely due to gas prices, which fell 7.7% last month, offsetting increases in food and shelter, the Bureau said.