New Automobile Costs Rise Nearer to Common of $50,000 in 2022

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The typical worth of a brand new automotive simply hit a brand new file excessive — and extra automobiles at the moment are promoting for $50,000 and up.

Nearly the whole lot within the economic system has gotten costlier in latest months, as the newest inflation numbers present. However abnormally excessive costs for vehicles and fuel have made instances particularly powerful for drivers.

Whereas fuel costs and used automotive costs are lastly coming down, new automotive costs are costlier than ever. The typical worth shoppers are paying for brand new automobiles within the U.S. reached a brand new file of $48,301 in August, based on a report this week from car valuation firm Kelley Blue E-book.

For the sake of comparability, the common worth for a brand new automotive was $48,080 in July. A 12 months in the past, the common was $43,589 — or roughly $5,000 lower than it’s now. (It is value allowing for {that a} 12 months in the past was additionally thought-about an particularly dangerous time to purchase a automotive.)

One cause why it is so laborious to purchase a brand new automotive at an inexpensive worth is that there’s nonetheless a scarcity of automobiles obtainable for buy. Rebecca Rydzewski, a analysis supervisor who oversaw the newest Kelley Blue E-book report, mentioned stock ranges for brand new automobiles improved in August, getting again to the very best level since June 2021. However stock continues to be under 2019 and 2020 ranges, and it’s particularly tight for subcompacts, hybrids and electrical automobiles (EVs), she mentioned.

The result’s a way more aggressive (and costly) marketplace for patrons, who’re more and more more likely to be paying $50,000 or extra for a brand new set of wheels.

10 automotive producers averaging costs of $50,000+

The typical value of latest vehicles elevated by $222 in August, marking 5 consecutive months of rising costs.

Ten automotive producers analyzed by Kelley Blue E-book now have common new car buy costs above $50,000, together with three firms that handed the mark within the final 12 months: Volkswagen, Common Motors and Stellantis, which is the mother or father firm for automotive manufacturers together with Dodge, Chrysler, Jeep and Ram.

  • Tata Motors, $86,154
  • Rivian, $73,396
  • Tesla Motors, $69,831
  • BMW, $68,389
  • Daimler, $66,158
  • Geely Auto Group, $58,648
  • Stellantis, $54,880
  • Volkswagen Group, $54,858
  • Ford Motor Firm, $54,227
  • Common Motors, $52,175

Kelley Blue E-book mentioned luxurious automobiles accounted for a higher-than-normal share of latest automotive purchases in August, which is a part of the explanation why common costs are at a file excessive. The rising variety of EV choices, which are typically priced within the vary of luxurious vehicles, can also be driving up the common.

Whereas automotive producers and specialists have lengthy instructed us that electrical vehicles will ultimately get cheaper and extra accessible to the common American household, the common buy worth for EVs has been surging.

In August, common EV buy costs reached $66,524, a rise of 1.7% since July and a 15.6% improve within the final 12 months.

Knowledge from the Bureau of Labor Statistics launched Tuesday additionally confirmed new car costs are rising — up 0.8% from July to August, outpacing the general 0.1% month-to-month improve in client costs. New automotive costs are up a whopping 10.1% within the final 12 months, based on the August client worth index (CPI).

The glimmer of fine information: Used automotive costs dropped 0.1% in August, a second consecutive month-to-month decline. On the 12 months, nonetheless, used automotive costs are up 7.8%, based on CPI information.

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