Report: The Average Price of a New Vehicle

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The average price for a new vehicle is on its way down – but it’s not a straight drop — according to the latest sales figures.

Transaction prices for new cars are higher now than they were one month ago, says car valuation site Kelley Blue Book (KBB), which analyzed average transaction prices (ATPs) for December 2023.

Despite the slight bump in price, when you look at the data year over and year and by car type, it becomes clear that prices are gradually going down.

How Much Does a New Car Cost Right Now?

The average price for a new vehicle was $48,759 in December 2023 — a month-over-month hike of 1.3% but down 2.4% from what it was one year ago when it reached an all-time high.

Breaking down different categories of vehicles, here is the latest price information from KBB, including some revised numbers:

  • For new non-luxury vehicles, the average price was $45,283 — a $1901 increase compared to the previous month but a year-over-year decrease of 0.8%.
  • For new luxury vehicles, the average price was $62,523 — a 1% decrease compared to the previous month and an 8.8%  decrease year over year.
  • For new electric vehicles, the average price was $50,798 — down $1,564 November’s revised figures. “In December, EV incentives reached their highest point of 2023 at 10.6% ATP. A year ago, EV incentives were less than 2% of ATP,” the report says.

Let’s dive a little deeper still and look at the average prices of some major car categories as of December. We’ll also see how much their prices have changed month to month and since last year.

Car ManufacturerDecember
2023
Transaction
Price
(Average)
November 2023
Transaction
Price
(Average)
December 2022
Transaction
Price
(Average)
Month Over Month ChangeYear-Over-Year
Change
Compact Car$27,226$26,963$26,7361.0%1.8%
Compact SUV/Crossover$36,617 $36,712$36,326 -0.3%0.8%
Mid-Size Car$32,595$32,301$31,6430.9%3.0%
Full-Size Car$47,664$49,585$48,753-3.9%-2.2%
Full-Size Pickup Truck$66,511$66,561$64,532-0.1%3.1%
Luxury Car$50,745$50,734$59,1440.0%-14.2%
Minivan$47,458 $47,661$47,386-0.4%0.2%
Sports Car$51,325$51,525$47,713-0.4%7.6%
Subcompact Car$26,024$25,149$24,945 3.5%4.3%
Industry Average$48,759$48,130$49,9391.3%-2.4%

Shopping for a New Car? Read This.

In this crazy car market, money expert Clark Howard‘s advice is clear: Used cars are where you’ll get better value. That’s why his used car-buying advice has gone back to normal.

When it comes to new cars, he doesn’t want you to overpay, so if you can get by with the car that you have, he suggests that you hold on to it until new car prices drop further. To keep your current car on the road, read up on this simple maintenance schedule you can follow.

If you absolutely must get a new car, here are some ways to save.

1. Shop Around

Don’t take the first deal that comes along … or the second. Make sure you shop around to compare the best prices for similar models.

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“It’s ultra-important for you to comparison shop,” Clark says. If the dealer in your local area doesn’t have what you want, you may have to expand your search to find the vehicle for you.

“What you do is, you shop and even be willing to go farther to buy a new vehicle than you would have in the past,” Clark says. Read about Clark’s unusual tip to save money on a new car.

2. Avoid a Long Car Loan

Clark advises against taking out an extended loan on any car, new or used.

“The longest auto loan you should ever take out is 42 months,” Clark says. “If you can’t afford the payment on a 42-month loan, then you should buy a cheaper car.”

Read about Clark’s 42-month rule for auto loans.

Final Thoughts

Clark points out that the production issues that have vexed the car market for more than two years are finally starting to ease. Thankfully, this should translate into stabilization in the car market and cheaper vehicle prices for you.

If you’re shopping for a new vehicle right now, Clark says he feels your pain. On the other hand, he’s all in again on used vehicles.

Want more insight on vehicles? Read up on Clark’s new advice for used car shoppers.

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