For the first time ever, the average price of a new car has edged past $46,000, 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, adding that the average transaction price for November was up 8 percent over a year earlier.
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.
In a detailed analysis of new-car pricing, Consumer Reports and TrueCar have identified which models have gotten more expensive quickly, as well as identifying the best deals—including good deals on great cars.
According to CR’s analysis, the most discounted cars include a variety of models, but the list is dominated by those from luxury brands, such as the Alfa Romeo Giulia and Stelvio, Infiniti Q60, and Maserati Ghibili.
Some of the worst deals were found among vehicles that have been traditionally thought of as good bargains—Hyundai and Kia models. Transaction prices for the 2022 Kia Seltos, Sorento Hybrid, and Telluride SX AWD, for example, were 18 percent higher than their manufacturer’s suggested retail prices (MSRP), depending on the version bought.
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.
