The average transaction price of a new vehicle has increased since last year, but not by much. Could this be the incentive and relief consumers are looking for? On today’s episode of Inside Automotive, Brian Moody, Executive Editor at Autotrader, joins us to share insights on the latest data from Cox Automotive.
New vehicle prices are still astronomically high compared to pre-pandemic levels, although the more notable price rises have decreased to less than 1%. These elements are driving prices down because there is more inventory available.
1. Luxury brands currently make up 20% of the overall market, implying that consumers opt for more luxury brands than mainstream vehicles.
2. With minimal options available for vehicles priced under or at $ today, consumers are more likely to purchase a luxury vehicle than an EV.
3. By 2024, Autotrader predicts new EV sales will reach $1 million for the first time.
4. At $2,100 per vehicle, roughly 4% of the average transaction price, incentives are rising.
5. Used vehicles are trending down because the industry is seeing higher price wholesales than we saw at the beginning of the year.
“We found people are more open to the idea of EVs but favor hybrids since they are more equipped to their daily lifestyles.” – Brian Moody