In recent months, new vehicle inventory has plummeted as a result of the semiconductor chip shortage and various other supply chain issues. At the same time, consumer demand has risen, which has also led to a lack of incentives, higher prices, and bigger and longer loans being taken out by consumers. Things just continue to get worse in that regard as well, as new Kelly Blue Book analysis shows that average new vehicle prices reached a new all-time high in May.
“Last month’s average transaction price performance highlights an all-time high in year-over-year growth for the month of May,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “Many manufacturers reported year-over-year gains in average transaction prices.”
That data shows that new average new vehicle prices in the U.S. increased 5.4 percent, or $2,125, to $41,263, year over year. Ford and Lincoln prices only registered a 0.60 percent jump, however – $45,802 versus $45,508 last year, or a difference of just $294 – and actually decreased 2.6 percent from April.
Other automakers saw sharp increases in pricing over the last year, with Mitsubishi (12 percent), Stellantis (11.3 percent), General Motors (10.9 percent), and Honda (10.7 percent) all posting double-digit gains. In terms of vehicle segments, minivans led the way with a 15.4 percent jump in average pricing, followed by luxury full-size SUVs and crossovers (10.4 percent) and full-size SUVs and crossovers (10.1 percent).
With the chip shortage expected to last at least until the end of the year and possibly longer, this trend doesn’t appear likely to end anytime soon. Regardless, rising prices don’t seem to be deterring buyers, either. As Ford Authority previously reported, a recent study found that most car shoppers are well aware of the fact that they won’t be finding any deals on new vehicles, but intend to buy one anyway.
We’ll have more on the state of the new vehicle market soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.
Aren’t vehicle prices always achieving “all-time highs”?
It’s the toilet paper hoarding thing again, this time with new vehicles. And all those participating are IDIOTS.
I really hope that folks take their revenge on the dealerships that are screwing customers with the “market adjustment” to the price of the new vehicles that are still on the lots. Purchase from a dealership that does not choose to screw the customer. I also really hope that customers take their revenge on the vehicle manufacturers by not purchasing the flood of vehicles that will be delivered to the dealerships later this year or next year. The last post I read indicated that Ford had over 30,000 trucks, not including any cars waiting for parts. In July Ford is scheduled to start manufacturing 2022’s. Again, with no parts to complete. I ordered my F-250 in March 2021 and the dealership received notice that it has been built and is now sitting in a parking lot in Kentucky. I guess every bird in Kentucky will crap all over it, water spots, and other fallout that will leave spots on the paint. All of the manufactures should be ashamed of themselves for better managing their supply chains.
This is news, Brett? Come on, man, y’all can do better than that.
Ya…. but Brett got 3 of you regulars jabbering about it didn’t he? too funny…
Yeah, I know prices are at an all time high. I just paid around $60k for an Explorer ST that has about $30k worth of useless garbage tech on it that I don’t want. Automatic engine shut off at a stop light anyone? Ridiculous junk.