New-Vehicle Prices Set a Record in June, According to Kelley Blue Book, as Luxury Share Hits New High

Jul 12, 2022
  • New-vehicle buyers are in an “over sticker” market, paying well above MSRP every month this year.
  • With low inventory and high demand, incentives dropped to a record low in June, averaging only 2.3% of the average transaction price.
  • Strong luxury share – at 18% of sales – helps push the industry average price higher.

ATLANTA, July 12, 2022 /PRNewswire/ — The average price paid for a new vehicle in the U.S. in June was the highest on record and marked the first time the average transaction price (ATP) surpassed the $48,000 mark, according to new data released by Kelley Blue Book, a Cox Automotive company.

New-vehicle buyers have paid above MSRP every month this year, according to Kelley Blue Book.

The new-vehicle ATP increased to $48,043 in June 2022, according to Kelley Blue Book, beating the previous high of $47,202 set in December 2021. June prices rose 1.9% ($895) from May and were up 12.7% ($5,410) from June 2021.

New-vehicle inventory days’ supply inched up to the high 30s in June after being in the mid-30s since mid-January. Customer demand remains strong given continued supply issues. These conditions enabled most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). The average price paid for a new vehicle has been “over sticker” throughout 2022. In June, new vehicles from Honda, Kia and Mercedes-Benz were transacting on average between 6.5% and 8.7% over MSRP. On the other side of the spectrum, Buick, Lincoln and Ram were selling at nearly 1% below MSRP.

The average price paid for a new non-luxury vehicle last month was $43,942, up $615 from May, the highest price for a non-luxury vehicle on record. Car shoppers in the non-luxury segment paid on average $1,017 above sticker price. Consumers have paid roughly $1,000 more than MSRP in each month of 2022 versus only $158 over MSRP in June 2021.

“While prices for the industry are, on average, higher than MSRP, there are some non-luxury segments that are more affordable such as compact cars and compact SUVs/crossovers,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “These segments are selling for more than 30% less than the industry average transaction price.”

In June 2022, the average luxury buyer paid $66,476 for a new vehicle, up $1097 month over month, the highest price for a luxury vehicle ever. For comparison, luxury vehicles were selling for nearly $825 under MSRP one year ago. Luxury vehicle share remains historically high and increased to 18% of total sales in June, up from 17.3% in May.

The average price paid for a new electric vehicle (EV) increased in June by 3.8% compared to May and 13.7% versus a year ago. The average price for a new electric vehicle – over $66,000, according to Kelley Blue Book estimates, is well above the industry average and more aligned with luxury prices versus mainstream prices. Hybrid/alternative energy vehicles are selling at just over $39,000 in June, a $3,593 increase over May, and an $8,453 increase versus a year ago. High gas prices are driving consumers to consider electric vehicles, hybrids and smaller, more fuel-efficient gas-powered models.

New-vehicle average transaction price changes month over month by segment saw prices mixed in terms of increases and decreases. With an ATP of $39,040, hybrid/alternative energy cars saw the largest increase of $3,593. Hybrids have been in the lowest supply lately of any segment. With an ATP of $66,997, electric vehicles saw an increase of $2,444 in June, while vans increased by $658 to an ATP of $50,126. The different car segments showed nominal increases in average transaction price in June versus May. Also in extremely short supply, compact cars were up only $146 or 0.6%, while mid-size cars were up 1%, or $325 for the month. Luxury cars showed a 6.4% decrease in ATP and full-size cars showed a 0.2% decrease. Meanwhile, electric vehicles had the lowest incentives (as a percentage of ATP) of 0.4%, and entry-level luxury cars had the highest of 3.4%. Incentives dropped to a record low level in June, averaging only 2.3% of the average transaction price.

ManufacturerJune 2022
Transaction
Price
(Avg)*
May 2022
Transaction
Price
(Avg)*
June 2021
Transaction
Price
(Avg)*
Month-
Over-
Month
Percent
Change
Year-
Over-
Year
Percent
Change
BMW$66,390$66,176$59,3260.3 %11.9 %
Daimler$76,601$76,172$66,2260.6 %15.7 %
Ford Motor Company$54,602$52,135$50,3644.7 %8.4 %
Geely Auto Group$60,512$61,322$53,165-1.3 %13.8 %
General Motors$50,357$50,636$48,707-0.6 %3.4 %
Honda Motor Company$37,699$38,157$33,093-1.2 %13.9 %
Hyundai Motor Group$36,161$35,946$31,8340.6 %13.6 %
Mazda Motor Corporation$29,953$30,746$31,587-2.6 %-5.2 %
Renault-Nissan-Mitsubishi Alliance$35,496$36,239$32,225-2.1 %10.2 %
Rivian$72,902$72,973-0.1 %
Stellantis$53,976$53,997$49,7290.0 %8.5 %
Subaru Corporation$35,194$33,814$35,2124.1 %-0.1 %
Tata Motors$84,808$88,218$80,719-3.9 %5.1 %
Tesla Motors$68,392$64,969$61,1495.3 %11.8 %
Toyota Motor Corporation$40,111$39,127$38,5442.5 %4.1 %
Volkswagen Group$56,629$55,313$49,0582.4 %15.4 %
Industry$48,043$47,275$42,6331.6 %12.7 %

*Kelley Blue Book average transaction prices do not include applied consumer incentives

MAKEJune 2022
Transaction
Price
(Avg)*
May 2022
Transaction
Price
(Avg)*
June 2021
Transaction
Price
(Avg)*
Month-
Over-
Month
Percent
Change
Year-
Over-
Year
Percent
Change
Acura$45,315$54,760$45,225-17.3 %0.2 %
Alfa Romeo$52,355$53,668$47,464-2.5 %10.3 %
Audi$62,318$61,779$58,8400.9 %5.9 %
BMW$68,837$67,818$61,6811.5 %11.6 %
Buick$37,109$38,372$36,359-3.3 %2.1 %
Cadillac$70,734$71,403$69,022-0.9 %2.5 %
Chevrolet$46,871$47,299$46,253-0.9 %1.3 %
Chrysler$47,847$48,532$41,060-1.4 %16.5 %
Dodge$45,830$46,091$43,699-0.6 %4.9 %
Fiat$30,193$29,808$28,2261.3 %7.0 %
Ford$53,919$51,509$49,6964.7 %8.5 %
Genesis$57,296$58,271$59,225-1.7 %-3.3 %
GMC$58,131$57,710$55,2670.7 %5.2 %
Honda$36,842$36,604$31,6890.7 %16.3 %
Hyundai$35,768$35,685$30,8230.2 %16.0 %
Infiniti$59,051$58,816$51,0230.4 %15.7 %
Jaguar$74,676$80,089$65,763-6.8 %13.6 %
Jeep$52,504$52,761$46,021-0.5 %14.1 %
Kia$35,080$34,518$31,2831.6 %12.1 %
Land Rover$86,650$89,588$84,051-3.3 %3.1 %
Lexus$56,324$55,517$51,6991.5 %8.9 %
Lincoln$68,900$64,152$65,3167.4 %5.5 %
Mazda$29,953$30,746$31,587-2.6 %-5.2 %
Mercedes-Benz$76,601$76,172$66,2260.6 %15.7 %
Mini$38,274$39,856$34,827-4.0 %9.9 %
Mitsubishi$30,607$30,388$26,6180.7 %15.0 %
Nissan$34,729$35,553$31,572-2.3 %10.0 %
Polestar$58,736$59,264$60,129-0.9 %-2.3 %
Porsche$116,834$116,937$101,718-0.1 %14.9 %
Ram$59,494$60,186$55,773-1.2 %6.7 %
Rivian$72,902$72,973-0.1 %
Subaru$35,194$33,814$35,2124.1 %-0.1 %
Tesla$68,392$64,969$61,1495.3 %11.8 %
Toyota$37,620$36,814$36,5992.2 %2.8 %
Volkswagen$38,497$36,636$34,0845.1 %12.9 %
Volvo$60,660$61,500$53,138-1.4 %14.2 %
Industry$48,043$47,275$42,6331.6 %12.7 %

*Kelley Blue Book average transaction prices do not include applied consumer incentives

CategoryJune 2022
Transaction
Price
(Avg)*
May 2022
Transaction
Price
(Avg)*
June 2021
Transaction
Price
(Avg)*
Month-
Over-
Month
Percent
Change
Year-
Over-
Year
Percent
Change
Compact Car$26,211$26,065$23,9260.6 %9.6 %
Compact SUV/Crossover$35,021$34,717$32,3140.9 %8.4 %
Electric Vehicle$66,997$64,553$58,9143.8 %13.7 %
Entry-level Luxury Car$53,281$51,997$48,0482.5 %10.9 %
Full-size Car$44,632$44,740$42,498-0.2 %5.0 %
Full-size Pickup Truck$62,470$61,790$57,2761.1 %9.1 %
Full-size SUV/Crossover$73,196$72,739$68,0760.6 %7.5 %
High Performance Car$110,961$115,831$104,084-4.2 %6.6 %
High-end Luxury Car$115,901$117,306$106,110-1.2 %9.2 %
Hybrid/Alternative Energy Car$39,040$35,447$30,58710.1 %27.6 %
Luxury Car$74,032$79,056$66,939-6.4 %10.6 %
Luxury Compact SUV/Crossover$53,944$54,194$49,029-0.5 %10.0 %
Luxury Full-size SUV/Crossover$99,526$99,339$97,6320.2 %1.9 %
Luxury Mid-size SUV/Crossover$71,377$70,720$65,8140.9 %8.5 %
Luxury Subcompact SUV/Crossover$44,520$45,254$42,841-1.6 %3.9 %
Mid-size Car$31,945$31,620$30,3461.0 %5.3 %
Mid-size SUV/Crossover$47,349$46,847$43,6151.1 %8.6 %
Minivan$47,515$47,932$43,077-0.9 %10.3 %
Small/Mid-size Pickup Truck$41,002$40,488$41,1531.3 %-0.4 %
Sports Car$39,880$38,811$43,5432.8 %-8.4 %
Subcompact Car$23,009$22,681$20,6651.5 %11.3 %
Subcompact SUV/Crossover$29,350$29,256$27,4750.3 %6.8 %
Van$50,126$49,468$41,7411.3 %20.1 %
Industry$48,043$47,275$42,6331.6 %12.7 %

*Kelley Blue Book average transaction prices do not include applied consumer incentives

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About Kelley Blue Book (www.kbb.com)

Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book is a Cox Automotive brand.

About Cox Automotive

Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com

SOURCE Kelley Blue Book

For further information: Mark Schirmer, Cox Automotive, 734-883-6346, mark.schirmer@coxautoinc.com; Dara Hailes, Cox Automotive, 470-658-0656, dara.hailes@coxautoinc.com