It's not your imagination: New car prices keep rising. How expensive are they nowadays? Over $ 40,000.
This is evident from the rating analysts at Kelley Blue Book. The numbers crackers at KBB just reported that the estimated average transaction price for a light vehicle in the US was $ 40,857 in January 2021. This is an increase of $ 2,110 from January 2020, but is down slightly by $ 295 from the previous month.
"January 2021 prices assume a historic fourth quarter. At the end of 2020, average transaction prices exceeded $ 40,000 for the first time," said Kayla Reynolds, industry intelligence analyst at Cox Automotive (parent company KBB and Autotrader).
Are new car prices falling?
New car prices have been rising for years, but the fact that the average vehicle sales are now over $ 40,000 will still surprise many buyers. And if you're waiting for prices to fall, you probably shouldn't.
"As we've seen over the past few years, we expect transaction prices to continue to rise," Reynolds said. "While many manufacturers saw year-over-year growth, FCA / Stellantis saw the largest increase of nearly 10%."
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Fiat Chrysler America, now called Stellantis,
is home to brands like Jeep and Ram that make popular and expensive trucks and four-wheel drive vehicles.
Of course, not all new cars require $ 40,000. There are still plenty of half-price vehicles out there and even a few new cars under $ 20,000.
If you're wondering, the cheapest new car is the 2021 Chevrolet Spark, which includes stickers for $ 13,400 plus target fee.
See: This is the second cheapest new car on the market – and it has some nice standard features
At the other end of the equation? Let's just say there are a lot of new cars that cost a lot of money. Bringing that point home is our recently published article that there are more $ 200,000 cars than $ 20,000 cars.
Of course, you can save even more money by buying a used or certified used car.
This story originally ran on Autotrader.com.