The average price paid for a new car in the United States increased to $40,768 in April. That’s 2.2% more than prices one year ago and a $92 gain over prices in March.
“Comparing the market to this time last year when COVID-19 brought the industry to a halt, highlights an increase in demand, sales, and vehicle prices all have contributed to continually rising transaction prices,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. Cox Automotive is the parent company of Kelley Blue Book.
A worldwide microchip shortage is limiting production of many vehicles, contributing to short supplies at dealerships nationwide. The shortage is only part of the story, as many automakers have also made a strategic decision to carry smaller inventories indefinitely.
Shoppers are undeterred. A recent Kelley Blue Book study shows that many expect higher prices and are heading into the Memorial Day weekend sales rush prepared to pay well over sticker price.
From April 2020 to April 2021, prices are up for almost every type of vehicle. Electric car prices, however, dropped by 10.8%. The figure is the result, Cox Automotive says, of a decline in Tesla’s transaction prices.
“Many manufacturers reported year-over-year growth in average transaction prices, with Volkswagen Group seeing the largest increase year over year (up 9%),” Reynolds said. “Tesla had the greatest decrease from last year, down 10.3%.”
Luxury full-size SUVs and crossovers saw the largest year-over-year growth (up 14.4%). Luxury full-size utility vehicles hit the second-highest average transaction prices at $98,017, just behind high-end luxury cars. Prices are up on all models in the luxury full-size utility segment.
