Average New Car Prices Soared To All-Time High In June

As Ford Authority has reported extensively in recent months, both new and used vehicle prices have been reaching new record highs with each passing month. A byproduct of the semiconductor chip shortage that is still plaguing production, average new car prices just keep getting higher as inventory continues to shrink and buyers shrug off this alarming trend and continue to snatch up whatever sort of vehicles they can get their hands on. Now, unsurprisingly, average new car prices have reached another all-time high in the month of June, according to new data from Kelley Blue Book.

“Despite unprecedented low incentives and inventory levels in June, last month showcased more historically high average transaction prices, reaching an all-new record,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “New-vehicle affordability continues to decline as the income required to purchase the average new vehicle continues to climb. In June, for the first time in a decade, vehicle buyers were essentially paying sticker price – the manufacturer’s suggested retail price – for new vehicles.”

According to KBB, new vehicle prices jumped $2,527, or 6.4 percent over June of 2020, bringing the average new vehicle transaction price to $42,258 – a new all-time high in the U.S. That number is also $928 or 2.2 percent higher than May’s record-setting mark as well.

Ford Motor Company placed fifth among all automakers in the month of June with an average new vehicle transaction price of $50,412, up 10 percent from May’s $45,831 and 9.6 percent from June of 2020, when FoMoCo’s ATP came in at $46,005. Interestingly, the biggest year-over-year segment gains come from minivans (17.80 percent), mid-size cars (11.30 percent), and full-size luxury crossovers and SUVs (10.30 percent).

For now, there doesn’t appear to be any relief in sight for those seeking a deal on a new vehicle. The semiconductor chip shortage is expected to continue at least through the end of the year, and perhaps longer, while eager buyers continue to pay full price for what is available without hesitation.

SOURCE: FORD AUTHORITY