The average price paid for a new vehicle in the United States in September 2022 was down from August’s record but remains solidly above the $48,000 mark, according to new data released today by Kelley Blue Book. The new-vehicle average transaction price (ATP) decreased to $48,094 in September, slightly lower than the previous high of $48,240. September prices dipped 0.3% ($146) month over month from August, but were up 6.1% ($2,775) year over year from September 2021.
“Interest rates and average monthly payments were up in September, which means affordability worsened,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “With prices still well above MSRP and incentives from automakers still low, sales in September continued to struggle as consumers weighed their vehicle-buying options.”
The report found that September marked a record 16th straight month that new-vehicle ATPs were higher than the average manufacturer’s suggested retail price (MSRP).
Strong luxury vehicle sales have been a primary reason for overall elevated new-vehicle prices. Luxury vehicle share remains historically high, increasing to 18% of total sales in September from 17.6% in August. The high share of luxury sales is helping to push the overall industry ATP higher.
The report states that Mercedes-Benz and Jaguar showed “the most price strength in the luxury market, transacting between two and four per cent over sticker price last month.” Luxury brands Audi, Alfa Romeo, Infiniti, Lexus, Porsche, and Tesla showed the least price strength, selling one per cent or more below MSRP in September.
On average, car shoppers in the non-luxury segment paid $829 above sticker price, a slight decrease from August. Buick, Mazda, and Dodge showed the most price strength in the non-luxury market, transacting between two and four per cent over sticker price last month, while Ford, Honda and Toyota showed the least price strength, selling one per cent or more below MSRP in September. The average price paid for a new EV declined in September by $1,162, or down 1.8%, compared to August, but was up by 9.7% compared to a year ago in September 2021.
Incentives decreased again in September 2022 to only 2.1% of the average transaction price, a record low. Unsurprisingly, brands with higher inventory levels offered higher incentives in September.
