New vehicle prices have risen more than 50% over the last decade.
The average transaction price (ATP) for a new car was $48,247 in November 2023, an increase of less than 1% month over month and down 1.5% over the last year, according to the latest price data from Kelley Blue Book, a Cox Automotive company.
Overall, November marked the third consecutive month that new-vehicle transaction prices were lower year over year and the only time in the past decade that the ATP did not increase.
Despite the price decrease in 2023, shoppers in the market for a new vehicle may be surprised when they discover how much the average price has risen over the 10 years. The average cost of a new vehicle was $31,356 in 2013, marking a roughly 54% increase over the last decade, data from Kelley Blue Book shows.
Image by Cox Automotive
Sales incentives for new vehicles also climbed higher in November following a slight dip the month prior. The report notes that with new-vehicle sales incentives up 136% year over year in November, “[T]he new-vehicle market is shifting to a buyer’s market, not a seller’s market.”
“While consumers may feel some relief in vehicle prices and incentives as we close out 2023, automakers and dealers are feeling the results of the downward price pressure,” said Rebecca Rydzewski, research manager at Cox Automotive.
“The latest dealer sentiment survey by Cox Automotive clearly indicates that dealers are seeing profits contract as inventory levels return to normal, and incentives are turned up to help stimulate sales.”
Given the lower car prices in 2023, consumers may find that now is a good opportunity to buy.
In total, 16 of the 35 brands that Kelley Blue Book tracks saw year-over-year price declines in November. Tesla recorded the largest declines in November (-20.5%), followed by Buick (-6.4%), Land Rover (-6.0%), and Nissan (-5.7%). The largest year-over-year increase in ATP came from Dodge (+11.2%), Ram (+10.5%), Audi (+7.8%), and GMC (+7.8%).
