Consumers looking for a new car throughout 2022 might discover that they will pay higher prices. Kelley Blue Book lists the average price for a new car at $47,077. When this price was reached in December 2021, it was the ninth month in a row that car prices increased. Many dealerships and manufacturers believe that prices could go even higher.
Due to the supply chain and fewer cars to choose from along with the higher demand for new cars because of an economy that’s starting to regain its footing, it’s pretty much a dealer’s market. Incentives that have been offered are at the lowest that they have been in five years. This has resulted in manufacturers trying to get the models that take in the highest profits on car lots across the country.
The best month to purchase a new car, especially one that’s considered a luxury model, is December. Dealers are trying to eliminate as much inventory as possible in order to get the new models on the lot, which often means big savings for consumers. Kayla Reynolds analyzes details provided by Kelley Blue Book and has recently discussed sales in 2021 and how the price for transactions for luxury cars was at an all-time high. The average price for luxury vehicles was about $61,000 in November, rising to $64,000 in December. Non-luxury vehicles sold for an average price of $43,000. The overall average price for vehicles increased by about $6,000 throughout 2021, which is an increase of about $3,000 from 2020 when the economy was struggling for many consumers.
Consumers who are looking for a new car might want to wait a few months before making a purchase as the middle of the year can sometimes be less expensive for new vehicle prices. If consumers do need or want a new car, then they should look at the sticker price on the vehicle and add about $1,000 to that as deals aren’t being made like they were in recent years.
Even the used vehicle market has seen an uptick in prices compared to just last year as the supply and demand chain is still very tight. There simply aren’t many vehicles to go around as more people are trying to hold onto what they have instead of purchasing a new car and making high monthly payments.
Another factor leading to the increase in vehicle prices is a shortage of microchips that are found in most new cars. When looking at which cars to produce and which ones to send to dealers, manufacturers are choosing luxury SUVs, high-end cars, and trucks that can bring in more money instead of smaller cars that could wait for those microchips that are needed before they are mass-produced again.
