For new cars, the average transaction price was $47,892 in May, near an all-time high, according to Edmunds. Now, 10% of all vehicles sold cost more than $70,000, up from 3% five years ago.


https://www.cnbc.com/2023/07/02/why-its-nearly-impossible-to-find-a-car-for-less-than-30000-.html

I do not see any price relief in near future.

If Covid taught the auto industry one thing its low inventory keeps profits up. Artificial shortage means no manufacturer rebates or special financing, hence higher profits and lower costs.

You're 100% right, but I can't believe folks continue to buy with them taking that approach. As long as folks do, there's no reason for them to stop.

We need a new vehicle for the Mrs and I'm not looking forward to the raping we're going to receive thanks to this.

Yep, a new system of fleecing has emerged.

A lot of industries have adopted this approach.

Shrink that floor plan down to nothing has to help them. Dribble out inventory to create urgency for the purchaser. I think boat business is participating in this also. They continue to blame covid supply chain issues but I think you have to question that at some point.

Wait, I thought someone was told us new car prices are declining…..

People are also continuing to buy high optioned models which pushes the price up.

the semiconductor industry was quoting 70 weeks delivery and prices were the highest ever in my industry . Add that Renesas had a factory in Japan that is a major supplier to the auto industry had an unprecedented fab fire . That was all 2 years ago .
Today , costs are down significantly ---- here's an example , DRAM , which is a memory device used in everything , PC's , cell phones , servers , cars etc..... in 2021 , we were selling a DDR4 , 4Gb DRAM for $5 and you had to beg to get delivery . Today that same device is selling for $1.70 and you can get delivery tomorrow for any quantity . All semiconductors have come down in price and the shortage is over . The dealers are still saying it's an issue .

Waiting on my Dark Horse Mustang

Well, this comparison is from 5 years ago...so yeah not declining compared to 2018.

Always enjoy when folks pretend to be stupid to make a point. Seems easier for some than others.

The post does say "near an all-time high", which actually means it's NOT an all time high because it's declined from the high. But ok...

John Claytriot07 Wolfe

No kidding…no more inventory carry/interest costs for dealers. Has to be a big number saved!