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High New Car Prices Spur Increased Incentives, but End of Low Cost Sedan Is Affecting Buyer Enthusiasm

The average transaction price for a new car stands at $47,870, a 28 percent jump from $36,677 five years ago, according to reports.
High New Car Prices Spur Increased Incentives, but End of Low Cost Sedan Is Affecting Buyer Enthusiasm
New Hyundai cars are displayed on the sales lot of a dealership in San Leandro, Calif., on May 30, 2023. Justin Sullivan/Getty Images
Mark Gilman
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If you’re in the market for an inexpensive second car, a first car for a family member, or just want to save some money on a high-interest new-car purchase, the current automotive market may not be to your liking.

According to a report from Kelly Blue Book and Cox Automotive, the average transaction price for a new car is slightly lower this year than last, but stands at $47,870. While this is down 4.3 percent from a peak of $49,928 in December 2022, the high prices are still affecting overall sales.

Mark Gilman
Mark Gilman
Author
Mark Gilman is a media veteran, having written for a number of national publications and for 18 years served as radio talk show host. The Navy veteran has also been involved in handling communications for numerous political campaigns and as a spokesman for large tech and communications companies.