December 2, 2023

Car buyers are getting a respite in terms of rising prices on new vehicles.

On Wednesday, Kelley Blue Book released July pricing data that showed the smallest year-over-year price increase in the last decade, prompting Research Manager Rebecca Rydzewski to write, “New-vehicle price inflation has all but disappeared in 2023.”

According to Kelley Blue book data, the average price Americans paid for a new car was 0.4% higher than one year ago. The average transaction price of a new vehicle in July was $48,334, about $199 higher than it was in the year-ago period.

Unsold 2023 Silverado pickup trucks sit in a long row at a Chevrolet dealership on June 18, 2023, in Englewood, Colo.

Reasons to head to a showroom

In more good news, data showed that compared with the start of the year, average transaction prices are down 2.7%, or $1,335, the largest January to July drop in the past decade, Kelley Blue Book data showed.

“New-vehicle prices, primarily driven by cuts in luxury and electric vehicles, are decreasing as inventory is steadily improving,” Rydzewski said. “With higher inventories and higher incentives helping to keep downward pressure on prices, there certainly are good reasons for shoppers to be heading back into the market.”

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