Average New Car Prices Hit Record High Of $51,974, But People Are Still Rushing To Buy Them
You probably don't need a car blog to tell you this, but life is rather expensive at the moment. From elevated gas prices thanks to President Donald Trump's decision to drag us into a war with Iran to the inflated price of groceries, now is a great time to be rich, and a rough time to be broke. It's an even worse time to be broke if you happen to need a new car, since according to data from Automotive News and Catalyst IQ, the average marketed price of a new car reached a new record high price on June 30 of an eye-watering $51,974. The previous record was set three-years ago on July 7, 2023.
The 2023 record was actually first broken on June 26 when the average marketed price of a new car hit $51,820, and it kept creeping upward to the latest record-setting peak on June 30. The new record high is up $2,421 or 4.9% from the same day last year, and $314 higher than it was a month ago. The findings come from the daily marketed prices that consumers see on dealer websites nationwide, and the average marketed price includes discounts baked into that price.
Compact sedan prices have risen more than all other segments, up 12% YOY
Different segments have experienced different average price fluctuations, but the segment with the most aggressive rate of price increase is the compact sedan segment. The price of a compact sedan is up 12% compared to this time last year, making them an average of $2,869 more expensive.
Five segments experienced price decreases when compared to last year, with convertibles falling the most at 9.8%, minivans at 3.2%, as well as full-size SUVs, extra-large SUVs, and luxury vans. Automotive News highlights a handful of models that have experienced significant price increases, but most of those models experienced recent redesigns, including the Kia Telluride which had a 16.4% price increase, the Toyota RAV4 which had a 15.7% price increase, and the Subaru Outback which had an 11.6% year-over-year average marketed price hike.
Despite these price increases, overall data shows that days-to-move is down, meaning vehicles are selling faster than before, despite the price increases. If you're looking for an affordable car, you might have better luck looking on the used market, but used car prices are higher than ever, too.