Average new-vehicle prices reached $49,740 in December 2024, approaching the all-time high set in December 2022, according to Kelley Blue Book.
This marked the fourth consecutive month of price increases, driven by strong luxury sales and steady consumer demand.
Despite a 23% increase in new-vehicle inventory year-over-year, prices remained high due to inflation, premium model sales, and limited incentives, which averaged $3,958 per vehicle, a 44% increase from December 2023. Luxury vehicles priced above $80,000 saw sales spike 37% year-over-year, highlighting a growing divide in affordability.
Electric vehicles contributed to price stability, with average transaction prices of $55,544 and record-breaking sales surpassing 1.3 million units in 2024. Analysts caution that elevated prices may challenge sustainability as inventory continues to outpace demand.
