New vehicle prices hit another record high in November

Jun 23, 2023

Customers continue to pay record amounts for new vehicles. The average transaction price for a new car sold in November was $48,681, according to Kelley Blue Book — a 4.4% increase from a year ago.

"The transaction data from November clearly indicates that prices are showing no signs of coming down as we head into the holiday season," said Rebecca Rydzewski, Cox Automotive research manager of economic and industry insights. "The mix of available vehicles still favors more expensive models and higher trim levels."

Manufacturer's Suggested Retail Prices have increased more than the average transaction price car buyers paid in November, indicating that automakers are building more expensive versions of vehicles to cater to those most able to afford them.

Luxury vehicle sales are driving the increase in prices. More than 18% of new vehicle sales last month were luxury models, compared to 16.1% a year ago. The average amount a luxury buyer paid: a record-setting $67,050.

Customers continue to pay above sticker price for vehicles, as they have since July 2021. In November, Porsche and Land Rover were commanding the highest premiums of 2% and 6.4%, respectively, above sticker. On the opposite end of the spectrum, Alfa Romeo, Audi, BMW, Infiniti, Lincoln and Volvo all sold for 1% or more below MSRP.

Non-luxury vehicle transaction prices also hit a record high of $44,584 in November, with shoppers paying an average of $410 above sticker price. While Honda and Kia led all non-luxury brands with 6% and 8% price premiums over sticker, Buick was at the bottom of the list, selling for at least 2% less than MSRP.

Electric vehicles showed the most dramatic price increases. The average transaction price for a new EV was $65,041 in November — a 2%, or $1,172, increase compared with a month earlier and a 9% increase from a year ago.