You won’t believe what people are paying for cars now
Americans were willing to pay $900 more than the manufacturer’s suggested retail price for nonluxury new cars in November 2021, pushing the average transaction price for a new car to a record-breaking $43,144. The sharp uptick in the amount of money paid for a new vehicle comes amid several factors, including continued low inventories of new cars and strong demand for pricey SUV models in particular. Demand for passenger cars rather than SUVs, vans, and trucks has plummeted. Cars accounted for just 22% of sales in November, compared with 30% as recently as the same month in 2018.
Also read: These Americans are twice as likely to blow past their budget this holiday season According to Cox Automotive research, luxury-brand cars also broke records, selling for an average of $61,455 and about $1,000 more than MSRP. Cox Automotive notes consumers typically expected to pay less than MSRP until six months ago when above-list price sales became the norm. See: 4 ways to save on gas Here’s a look at the five highest average transaction prices — the amount a consumer negotiated a vehicle to before any rebates, taxes, or registration fees — by automaker in November 2021:
(the parent company of Land Rover and Jaguar): $86,121
(the parent company of Mercedes-Benz): $73,721
(including Mini and Rolls-Royce): $61,624
(the parent company of Volvo and Polestar): $56,888
While it’s too early to predict 2022 sales, most automakers have posted price hikes (and often fewer trim levels) for the new year, due largely to supply issues that have made sourcing certain crucial parts difficult. This story originally ran on Autotrader.com.