New vehicle prices are showing signs of remaining steady and under sticker price, Kelley Blue Book reports.
The average price paid for a new vehicle in May 2023 was $48,528, which is $251 more than in April. Though prices are still $1,393 higher than they were a year ago, as reported by Cox Automotive, between May 2022 and May 2023 only a 3% increase in prices was seen–the smallest year-over-year price increase seen this year yet.
More Americans are looking to buy as well, with May’s sales volume up by 0.7% from April and up 22.1% from the previous year. To attract the influx of consumers, automakers have been offering more discounts and incentives recently, which made up 4% of average sales and brought the average price down by $1,914.
“The modest new-vehicle price increase in May was offset by increased incentives, so many buyers were able to find deals below sticker,” explained Cox Automotive’s Research Manager of Economic and Industry Insights, Rebecca Rydzewski.
