The Average Transaction Price for New Vehicles Reaches Two Year High at $47,362 as of December 2022

Following years of supply chain challenges, the average transaction price for a new vehicle reached over $47,000 at the end of 2022 due to continued low inventory levels. Dealerships anticipate the need for more inventory will continue to pressure new vehicle buyers. With interest rates on the rise, many consumers have canceled orders of new vehicles due to the uncertainty of where interest rates will be when the car is delivered. Despite low sale volume, manufacturers are posting record profits in 2022 caused by elevated vehicle prices.   According to Cox Automotive, new vehicle inventory rose at the end of the year, signaling that consumer demand may be falling.