Average New Car Transaction Price Climbs Ever Higher In 2024
The average cost of a new car in November rose to $48,724 – the highest recorded for 2024 and a 2.3% increase over the beginning of the year.
That’s up $699 (or 1.5%) from the same month a year ago, and it’s the second month in a row that the average transaction price (ATP) went up over the previous year, according to data released by Kelley Blue Book.
Though last month’s ATP continued its upward trend, it’s still below the highest recorded figure of $49,926 in December 2022. Cox Automotive Executive Analyst Erin Keating said, “The end of the year typically sees an increase in transaction prices, as luxury sales pick up as the year winds down.”
“If sales volumes in November are any indication, we think 2024 will end on a positive note for the auto business,” said Keating. “Yes, prices are trending higher year over year, but higher incentives and discounts are bringing in buyers.”
There’s good news for new-car shoppers, despite the ever-present new-car sticker shock.
“Higher prices were met with higher discounts in November, which has kept the retail business moving,” said Keating. New-vehicle inventory in November was above 3 million units, the first time since 2020 that car stocks have been that high. Strong inventory numbers tend to equal sales incentives, and last month’s average of 8% of ATP was 50% higher than the year prior and the fifth straight month of increase.
New electric vehicle sales were up in November – the second-highest month ever recorded, according to KBB – with an ATP of $55,105. EV prices were 3.8% lower last month than the year prior, while incentives were up to 14.9% of the ATP. “EVs right now are the best deals in the market,” said Keating.
The seasonally adjusted annual rate of car sales in the United States currently stands at 16.5 million, which is the best sales pace since the spring of 2021, according to KBB.
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Growing up in a family obsessed with performance and as the son of an automotive engineer, Jeremy Korzeniewski has spent his entire life as a car enthusiast. Also an avid motorcyclist, Jeremy has spent the last two decades writing about the transportation industry and providing insights to many of the largest automotive publications in the world.
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