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U.S. new vehicle prices hit record high in December

by Mike Robinson

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© Reuters. FILE PHOTO – Cars drive along the freeway downtown Los Angeles, California. January 22, 2020. REUTERS/Mike Blake/File photo

(Reuters) – The December average transaction price for new cars in America rose nearly 14% from last year due to strong sales of high-end vehicles, Kelley Blue Book, an auto industry consulting firm, stated in a Tuesday report.

Prices hit an all-time high of $47.077 last month due to tight inventory from new-vehicle demand.

According to the report, luxury cars, 18.4%, account for 18% of all December sales. This tends to push the average price higher during these last two months.

Global shortages and supply chain problems have caused severe damage to the U.S. automotive industry. This has resulted in low inventories and rising prices despite strong consumer demand.

According to an auto consultant, consumers paid more than the suggested retail price of the manufacturer (MSRP) for each six month. This is because dealers keep prices high or even above MSRP.

The median price of a brand-new non-luxury car was $40,072, slightly below the November record.

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