New Vehicle Prices End 2022 at Record Highs

According to Kelley Blue Book, the average transaction price for a new vehicle in the U.S. hit a record high in December. Average prices hit $49,507, a 4.9% year-over-year increase and a 1.9% month-over-month increase. These high prices come at a time when new-vehicle inventory levels have continued to increase from historically low levels in early 2022.

Kelley Blue Book also stated that new-vehicle average transaction prices have been above the manufacturer’s suggested sticker price for more than a year. Higher prices and increasing loan rates continue to put downward pressure on sales. Rebecca Rydzewski, Research Manager of Economic and Industry Insights for Cox Automotive, said, “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end… Luxury prices fell slightly in December, but nonluxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.”