The average price of new vehicles has fallen below the manufacturer’s suggested retail price (MSRP) for the first time in 20 months, data published by automotive research company Kelley Blue Book has indicated.
While vehicle prices surged following pandemic-driven supply chain bottlenecks and surging demand for private cars, prices have recently cooled off with market conditions returning to normal. The average consumer transaction price of a new vehicle in the U.S. was $48,008 in March; a 1.1% decline from the average price tag of $48,558 in February.
In March, the average transaction price for new non-luxury vehicles including brands such as Chevrolet, Ford, Hyundai, and Nissan, was $44,182; down $505 from February. The average retail price for luxury vehicles, on the other hand, remains above the MSRP.
Rebecca Rydzewski, an auto-industry researcher at Kelley Blue Book’s parent firm Cox Automotive observed the reasons behind the recent price decline for new vehicles in the U.S. “Right now, in-market consumers are finding more inventory, more choice and dealers more willing to deal, at least with some brands,” she explained.
Several top global automakers including the likes of Toyota Motor Corp reported a rise in first-quarter U.S. sales as supply chain bottlenecks are overcome and shipping is improved.