According to a recent report by KBB, the average American new car price fell in January to $49,388, down 0.4% from December’s record high. Unfortunately, prices are still inflated by 5.9% from their places just a year ago with buyers spending $310 more on a car than MSRP in January.
Overall, this is good news because it’s about time the new car market started seeing some relief. Used car market prices fell 14.9% in 2022 over 2021 and with these vehicles becoming better values as time goes on we’re going to see new car prices follow right behind. Thanks in part to all the Federal Reserve rate hikes, 2023 is starting to look up for car prices.
KBB says that most of the non-luxury automakers like Chevrolet, Ford, and Honda, saw declines in prices between 0.3% and 4.9% month over month. Others like Toyota and Ram didn’t fall in line though, with those brands seeing inflated prices of 2-5% over a sticker in January.