The average price of new cars hit a record high of $47,077 in December
The auto industry is on a roll, but it’s bad for consumers.
The average price paid for a new vehicle set a ninth consecutive monthly record in December of $47,077, according to Kelley Blue Book.
Low inventories caused by ongoing supply chain issues combined with strong demand driven by an improving economy reduced incentives to a five-year low and caused automakers to prioritize production of their models the most profitable.
“December is typically the best month for luxury vehicle sales, and 2021 has followed that trend in a big way,” said Kayla Reynolds, analyst for Kelley Blue Book owner Cox Automotive. “The result was another record average transaction price, driven entirely in December by increased sales of luxury vehicles.”
Prices paid for luxury models rose from $61,455 in November to $64,864 in December, while sale prices for non-luxury vehicles rose from $43,144 to $43,072.
GET FOX BUSINESS ON THE ROAD BY CLICKING HERE
The average price increase over the year was $6,220, compared to $3,301 in 2020 and $1,799 in 2019.