Commentary
Average new car prices have hit record-highs.
U.S. auto prices have been increasing for years since pre-COVID. But heading into this year, there was hope that with higher inventories on the horizon and computer chip supply-chain issues behind us, prices would ease.
If only that were the case. For consumers already struggling with high inflation, the hits keep coming.
All data points suggest that car prices are at a record and perhaps will rise even higher. Kelley Blue Book—the auto industry benchmark—stated that January new car prices rose 5.9 percent versus a year ago, to reach $49,388. To repeat: the average new car price in America is now around $50,000. The Cox Automotive/Moody’s survey reports that the average car payment as of December 2022 was a record-high $777 per month….