The average new car price climbed to $45,031 in September, hitting a new record high for the sixth consecutive month, according to a new release from Kelley Blue Book.
Last month’s increase was the first time that new car prices topped the $45,000 mark and were up 12.1% or $4,872 from the cost of new vehicles in September 2020. It was also up 3.7% or $1,618 from August.
But as prices surge, the sales pace is slowing. Total sales in September dropped to just over 1.01 million, a 7.3% drop from the month before and one of the lowest sales volumes in the past ten years.
If you are looking to purchase a new car as prices surge, you can lower your costs by reducing your auto insurance payments. Visit Credible to compare price quotes from multiple providers at once and see which one has the best plan for you.
A shift in car purchases
One reason for the price surge could be that the vehicle mix changed as consumers bought less lower-priced sedans, compact cars and entry-level car types to more expensive pickups, SUVs and cars from the luxury market.
"The record-high prices in September are mostly a result of the mix of vehicles sold," Cox Automotive analyst Kayla Reynolds said. "Midsize SUV sales jumped in September compared to August and full-size pickup share moved up as well. Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated."
If you are interested in buying a new car as prices surge, consider changing your auto insurance policy to help keep costs low. Visit Credible to get prequalified in minutes without affecting your credit score.
Luxury cars take over market share
In September, luxury car sales increased to 16.6% of all vehicle sales, up from 15.1% the year before, KBB’s report showed. That marks one of the highest shares in the past decade.
Luxury car buyers paid an average of $60,845 for a new vehicle in September. And some automakers such as Acura, Cadillac, Genesis and Mercedes-Benz saw average transaction price (ATP) at dealerships increase more than 20% annually.
For example, in today’s car market, Cadillac prices increased 32% to $81,939. And drivers pay close to $100,000 for a new Cadillac Escalade, which saw a 50% jump in sales from August to September.
If you are interested in buying a car, one way to make it more affordable is by lowering your monthly payments for auto insurance. Contact Credible to speak to an auto insurance expert and get all of your questions answered.
How to keep your costs low
When shopping for a new car, drivers can take several steps to ensure they keep their costs low as new home prices continue to surge to new highs. Some of those steps include:
Skip dealer accessories
When buying a car, dealers will add accessories that increase the price of the vehicle. However, many new car buyers can save money by excluding extra packages and purchasing parts from third parties.
Reassess your insurance coverage
Driver insurance needs are constantly changing, and their changing situation could also mean another insurance company may have better prices since companies offer discounts for various reasons. If you are looking to get a lower price on auto insurance, visit Credible to compare multiple companies at once and find the one with the best price for you.
Do your own maintenance
You can keep up a car’s maintenance and even minor repairs without taking it into the shop. Information on how to perform auto maintenance and repairs is readily available on YouTube and online. By learning to perform specific tasks themselves, drivers save hundreds or even thousands each year.
In today’s economy, buying a car is expensive and competitive as drivers struggle amid limited supply due to the chip shortage. If you are interested in keeping costs low as new cars see higher prices, contact Credible to speak to an auto insurance expert and get all of your questions answered.
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