Average New-Car Price Tops $47,000, an All-Time High
A Consumer Reports analysis helps car shoppers find the best deals amid record prices
For the first time ever, the average price of a new car has edged past $47,000, according to a new report from Kelley Blue Book and data from TrueCar, a CR partner that provides market analysis and an online marketplace for cars. Buying a car—just about any car—has been difficult for months now, and new data shows that new cars, like used ones, are costing consumers more than ever. Blame it all on the pandemic and the resulting global semiconductor shortage that has hobbled automakers’ ability to crank out new cars, crimping supply, pushing up prices, and limiting availability.
“We are seeing new transaction prices hit all-time highs,” says Nick Woolard, an analyst with TrueCar.
Woolard says that new-car inventory at dealerships is getting a little better but is still pretty thin right now. “You see dealers parking their vehicles sideways to make it look like they have more vehicles on the lot,” he says, adding that even a modest increase in the availability of new cars may lead to some relief in pricing.
Over several years, a variety of factors has contributed to pushing up the average new-car price. For one thing, consumer tastes have gravitated toward more expensive truck and SUV models. And the recent scarcity of all models has led to more extreme price increases among traditionally more affordable models.
According to the latest Consumer Price Index report from the U.S. Bureau of Labor Statistics, the rise in new- and used-car prices leveled off a bit since this summer, when they spiked and became one of the leading causes of inflation.
As always, local pricing may differ from national averages. You can see the transaction prices for these and every other mainstream vehicle from the model pages at CR.org/cars. Woolard points out that waiting for better times may not be the best strategy, because recovery from today’s elevated car prices is likely to be gradual.
“If the question is wait or buy now, I don’t think that it’s going to be drastically different between now and the near future,” he says. “The best advice is that if you need a new car, get a new car.”
Be sure to check out Consumer Reports’ lists of the current best deals on new cars and new SUVs that meet our stringent criteria to be recommended, the worst deals, and browse the list of the most discounted cars.
CR's Build & Buy Car Buying Service
In addition to research and reviews, Consumer Reports offers members access to the Build & Buy Car Buying Service at no additional cost. Through this service, members can compare in-stock vehicles, see what others paid for the car they want, and customize their payments online. Once they find the vehicle they are interested in, members can get upfront price offers online from local certified dealers. On top of national incentives, Consumer Reports members are eligible for additional incentive offers from select manufacturers through the Build & Buy Car Buying Service. Plus, members can get an instant trade-in value for their current vehicle to use toward their next car purchase.
