For the first time in nearly two years, the new car average sale prices fell below the manufacturer’s suggested retail price (MSRP). The average transaction price paid for a new vehicle in the United States declined in March 2023 to $48,008, according to Kelley Blue Book data. That’s a month-over-month decrease of 1.1%. This means that consumers paid less than the sticker price displayed on the window.
“Right now, in-market consumers are finding more inventory, more choice and dealers more willing to deal, at least with some brands,” said Rebecca Rydzewski, auto-industry researcher at Kelley Blue Book’s parent firm Cox Automotive.
According to their data, non-luxury buyers paid an average of $44,182. Chevrolet, Chrysler, Dodge, Ford, Hyundai, Kia, Nissan, and Volkswagen all saw their average price decline in March. Honda and Kia dealers still charged an average of 3% to 6% over sticker price. Their research also found that luxury buyers saw less of an improvement. They paid an average of $65,202.
New cars now average over $48,000 before taxes and fees. There are still new cars available for less than the average cost. As of May 2023, there are only three new vehicles that would cost $20,000 or less.
However, all three of these cars are small sedans with minimal cargo space and efficient gas mileage.
Take a look at the only 3 new cars under $20,000 or less.