Just earlier today, we talked about a very unusual phenomenon on the used car market in the United States. Many high-end and mainstream one- to three-year-old models now cost more than when they were sold new, and a new report shows the situation is similar on the new car scene. In fact, market analysts at Kelley Blue Book have discovered the average selling price of new cars in the country has hit an all-time record last month.
According to the agency’s latest report, the average new car price in the United States in May 2021 was $41,263, which is $2,125 or 5.4 percent more than the same month a year ago. Even more shockingly, this figure represents a huge jump compared to April this year of $493 or 1.2 percent.
“Last month’s average transaction price performance highlights an all-time high in year-over-year growth for the month of May,” Kayla Reynolds, industry intelligence analyst at Cox Automotive, comments. “Many manufacturers reported year-over-year gains in average transaction prices. The largest increase came from Mitsubishi, up 12 percent from this time last year.”
Taking a look at Kelley Blue Book’s full analysis, it seems that big SUVs and large trucks contribute the most to the rising average new car prices in the US. Surprisingly, minivans see the highest increase in average prices of 15.4 percent (May 2021 versus May 2020), followed by luxury full-size SUVs (10.4 percent), non-luxury full-size SUVs (10.1 percent), and luxury sedans (8.9 percent).
Interestingly, the average prices of high-performance cars were down by 13.2 percent on average, which probably means now is the best time to look for a new sports car. Meanwhile, prices of new electric vehicles fell by 10.8 percent from May 2020 to May 2021.
