Americans were willing to pay $900 more than the manufacturer’s suggested retail price for nonluxury new cars in November 2021, pushing the average transaction price for a new car to a record-breaking $43,144.
The sharp uptick in the amount of money paid for a new vehicle comes amid several factors, including continued low inventories of new cars and strong demand for pricey SUV models in particular. Demand for passenger cars rather than SUVs, vans, and trucks has plummeted. Cars accounted for just 22% of sales in November, compared with 30% as recently as the same month in 2018.
According to Cox Automotive research, luxury-brand cars also broke records, selling for an average of $61,455 and about $1,000 more than MSRP.
Cox Automotive notes consumers typically expected to pay less than MSRP until six…