The average price for a new vehicle continues to descend, but remains relatively high compared to just a few years ago, according to the latest sales figures.
Average transaction prices for new cars are down 5.4% from what they cost 15 months ago, says car valuation site Kelley Blue Book (KBB), which analyzed average transaction prices (ATPs) for March 2024.
How Much Does a New Car Cost Right Now?
The average price for a new vehicle was $47,218 in March 2024 — a year-over-year dip of 1% but still 15.5% higher than they were in March 2021.
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 $44,083 — a $465 decrease compared to the previous month.
- For new luxury vehicles, the average price was $62,067, driven almost exclusively by automaker incentives.
- For new electric vehicles, the average price was $54,021 — up from February’s revised figures of $53,707. The March numbers represent a 9.7% year-over-year decrease.
Let’s dive a little deeper still and look at the average prices of some major car categories as of March. We’ll also see how much their prices have changed month to month and since last year.
| Car Manufacturer | March 2024 Transaction Price (Average) | February 2024 Transaction Price (Average) | March 2023 Transaction Price (Average) | Month Over Month Change | Year-Over-Year Change |
|---|---|---|---|---|---|
| Compact Car | $26,873 | $27,029 | $26,781 | -0.58% | 0.35% |
| Compact SUV/Crossover | $36,082 | $36,164 | $35,940 | -0.23% | 0.39% |
| Mid-Size Car | $32,382 | $31,948 | $31,959 | 1.36% | 1.32% |
| Full-Size Car | $45,689 | $46,196 | $46,860 | -1.10% | -2.50% |
| Full-Size Pickup Truck | $65,261 | $65,787 | $63,610 | -0.80% | 2.59% |
| Luxury Car | $56,034 | $54,085 | $56,157 | 3.60% | 0.22% |
| Minivan | $48,705 | $48,672 | $47,688 | 0.07% | 2.13% |
| Sports Car | $46,345 | $48,472 | $46,184 | -4.39% | 0.35% |
| Subcompact Car | $24,097 | $24,708 | $24,299 | -2.47% | -0.83% |
| Industry Average | $47,218 | $47,672 | $48,533 | -0.95% | -2.71% |
Shopping for a New Car? Read This.
According to KBB’s news release, “More automakers offered incentive packages over 10% of ATP in March compared to February. Incentives were highest for Polestar, Lucid, Tesla, Infiniti, Mini, Nissan and Volkswagen, according to Kelley Blue Book estimates. Only three automakers – Land Rover, Porsche and Toyota – had incentives at or below 3.2% of ATP, the average incentive one year ago.”
Because of the sweet incentive deals, money expert Clark Howard says there may be an opportunity for you to score a new car right now.
“There’s a lot more manufacturer incentives and rebates, special financing offers you’re seeing pop up on the tv ads. And then the dealers discounting below suggested manufacturers retail price, like it used to be,” he says on his podcast.
“Because of specific disruptions in the used vehicle market, you’ll likely find that a brand new version of these brands will be cheaper to buy than a two-year-old version of these brands,” he says.
Here are some ways to save on a new car right now:
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.
“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 are starting to ease. Thankfully, this is beginning to translate into stabilization in the car market and cheaper vehicle prices for you.
Want more insight on vehicles? Read Clark’s guide on how to buy a new car.
