Average New Car Price Holding Steady Under Sticker
The average American new car buyer paid $48,528 in May — $251 more than in April. The negligible increase means prices are holding close to flat, and are still under sticker price.
Prices are still higher – $1,393 beyond what they were a year ago, according to Kelley Blue Book parent company Cox Automotive. The year-over-year increase in May of 3% was the smallest in 2023; in May 2022, new vehicle prices were up 13.5% year over year.
More Americans are buying new cars as the good news spreads. Sales volumes in May were up month over month by 0.7% and up 22.1% year over year, higher than most forecasts (though the figure was fed in part by a healthy dose of fleet deliveries).
With more shoppers in the market, automakers are starting to compete for their attention with discounts. Incentives made up almost 4% of the average sale, bringing prices down by an average of $1,914.
“The modest new-vehicle price increase in May was offset by increased incentives, so many buyers were able to find deals below sticker,” said Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox Automotive. “This is good news for consumers as manufacturers are seeing higher inventory and increased competition and need to push sales to keep inventory moving.”