Average New Car Prices Rose to a New Record, but EV Prices Shocked Everyone

Sales data published by Kelley Blue Book show that new car prices skyrocketed in November to a new all-time high. Electric vehicles were the most affected, with new EV prices landing in the luxury car territory. This pushed the price-parity dream even further, hindering decarbonization efforts.
Average new car prices rise to a new record 6 photos
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The average new car sold in November cost $48,681, a new all-time high. That’s $422 more than the average price in October and $2,250 higher than one year ago. Kelley Blue Book (KBB) shows that the average buyer has paid more than the manufacturer’s suggested retail price (MSRP) every month since July 2021. The sad part is that KBB doesn’t see the prices coming down anytime soon.

Apparently, people don’t mind paying more for the car of their dreams, considering that almost one in five opted for a luxury car in November. The average luxury car buyer paid $67,050 for a new vehicle, up $405 from October, marking a new record high. Meanwhile, non-luxury car prices also rose, but less dramatically. The average price in this segment was $44,584, with people paying, on average, $410 above the sticker price, slightly more than they did in October.

On the other hand, electric vehicles remained a luxury for most people, moving further away from achieving price parity with combustion cars. The average EV price in November was $65,041, firmly in the luxury car territory. Not only that, but EVs have recorded the steepest price increase, up 2% from October and 9% from November last year. For comparison, ICE prices rose only 0.9% from October and 4.4% from November 2021.

Inflation was cited as the most important factor contributing to the price increases, but part shortages and production issues have also contributed. These problems compounded to make cars, and especially electric vehicles, hard to find. Long delivery times and high demand have pushed dealers to charge more over MSRP. Customers were also more than happy to pay if this meant getting their new ride earlier.

Non-luxury brands are more likely to sell their vehicles above the MSRP, with markups ranging from 6% to 8% in November. In the luxury market, Porsche and Land Rover sold cars for an average of between 2% and 6.4% over MSRP in November. At the same time, Alfa Romeo, Audi, BMW, Infiniti, Lincoln, and Volvo sold for 1% or more below MSRP.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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