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Image source: Carscoop. |
After a decade of continuous growth, with average new car prices surging from $32,000 to nearly $50,000 in the US, a downward trend has emerged, making it slightly easier for Americans to afford a set of wheels.
According to Kelly Blue Book, the current average transaction price (ATP) for a vehicle in the US is $48,401, a decrease of $23 from the previous month and $106 less than June 2023. This figure also represents a 3.1% drop compared to 2022.
The segment witnessing the most significant price drop is the practical SUV. Currently, the average ATP for these versatile vehicles is $23,031, a 7.3% decrease year-over-year. Large SUVs have also seen a reduction, with an ATP of $46,467, 3.1% lower than last year.
This is welcome news for US consumers who have endured years of rising car prices. Cox Automotive data reveals that between 2020 and 2022, the average American with a median income had to work 33-36 weeks to pay off an auto loan. However, in recent times, the payoff period for auto loan borrowers has decreased.
Carscoop attributes the decline in new car prices primarily to economic challenges and a surplus of vehicles in stock, forcing manufacturers to offer incentives and price adjustments to attract buyers.
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