The average new car in America sold for $48,301 in August – a fifth straight month of increases and a record high.
August prices rose an average of $222 over July and sit 10.8% higher than one year ago.
Prices Rising Despite Stable Inventory
Car dealers measure their supply of new cars in a measure they call days of inventory – how long it would take them to sell out of new cars at the current sales rate if they couldn’t acquire more. They have reported inventory levels in the mid-to-high 30s throughout the summer – historically low but not changing month-to-month.
Americans have bought about 1.1 million cars per month in 2022 – down from 1.4 million in the first eight months of 2019 before the COVID-19 pandemic began.
“Prices are still high and climbing incrementally every month,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “New-vehicle inventory levels have been rising through August, now reaching the highest level since June 2021.”
Cox Automotive is the parent of Kelley Blue Book.
Situation Different for Different Brands
Though the average price is news, averages hide complex stories. Shoppers can still find bargains at some sales lots and not others.
Hyundai, Land Rover, Honda, and Kia all charged an average of 5% to 9% over sticker price in August. Ram, Volvo, Lincoln, Buick, Alfa Romeo, and Fiat all sold cars at 1% or more below invoice that same month.
Deals Still Exist in Some Segments
The type of vehicle you want matters as much as the brand. “Supply of popular segments – like subcompacts, hybrids, and EVs – still remains very low,” Rydzewski says.
Car shoppers in the non-luxury segment paid, on average, $1,102 above sticker price. Luxury buyers paid closer to sticker price.
A summer of high gas prices may have changed shopper behavior. Hybrids sold for an average of $1,926 over sticker price in August. The average full-size truck sold for just $410 over MSRP.
Surprisingly, luxury compact SUVs sold for an average of $19 below invoice.
According to Kelley Blue Book estimates, the average price for a new electric vehicle – over $66,000 – remains well above the industry average, aligning more with luxury prices versus mainstream prices. Congress radically changed the rules governing federal electric car tax incentives mid-month, which is likely to drive up the average purchase price when September’s numbers are clear.
