Almost $41 Grand Average For A New Vehicle

In the market for a new ride? The average price of a new vehicle from a dealer lot in the US is now $40,578. Edmunds.com reports that is a new all-time record. It’s happening due to a whole string of reasons. But the bottom line is automakers are pinched, so they need to pass that pinch along. Some potential buyers are deciding now just isn’t the time. Others though are biting their tongue and saying, “Let’s wrap this up”, and leaving dealer lots with a new and very pricey ride.

Not only are new cars and trucks more expensive, but the used vehicle market is also going crazy. Part of the reason for that is many people saying no to new are turning to used and that drives up demand which drives up prices. It’s a vicious circle and no one really knows who is getting the better end of the deal.

The Associated Press is reporting that used car and truck prices are actually going up faster than new vehicles. Here’s how the AP stacks it all up. “The main reason for the exploding prices is a simple one of economics: Too few vehicles available for sale during the pandemic and too many buyers. The price hikes come at a terrible time for buyers, many of whom are struggling financially or looking for vehicles to avoid public transit or ride-hailing because the virus. And dealers and analysts say the elevated prices could endure or rise even further for months or years, with new vehicle inventories tight and fewer trade-ins coming onto dealers’ lots.”

There are still deals to be found. If you can, be patient and work with a reputable local dealership that relies on reputation, referrals, and return business, more than a quick buck.