The average transaction price (ATP) of a new car in the u.s. reached a record high in December at $49,507, up 4.9% from the previous year’s levels and 1.9% from November.
According to data issued by Kelley blue book, new-vehicle inventory levels are rising from historic lows earlier in 2022, but prices are still high. The average manufacturer’s suggested retail price (MSRP) has remained higher than new-vehicle average transaction prices for more than a year.
The quantity of new-vehicles is increasing steadily, however, certain brands have a greater supply than others. Overall incentives are still quite low, but they are rising. Due to incentives that were close to 6% of ATP, both ATP for electric vehicles and luxury cars decreased in December.
In comparison to November, the average price paid for a new EV dropped by $3,594 (down 5.5%), while the price fell by 0.6% towards the end of the year. Estimates show the typical new EV sold for $61,448, which is still much higher than the industry average. Significant price reductions at Tesla, which controls more than 65% of the electric vehicle market, were the primary cause of the price drop. Tesla raised pricing earlier this year, citing supply constraints. In December, the business changed its strategy.
Again affected by developments at Tesla, electric vehicles had the biggest incentives in December with 6.2% of ATP, closely followed by premium vehicles with 5.8% of ATP. Vans, minivans, and full-size SUVs, on the other hand, all had incentives that were less than 1% of ATP.
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