Price tags on new cars are finally starting to ease, according to new data from car valuation site Kelley Blue Book (KBB), which analyzed average transaction prices (ATPs) for February 2023.
While new car shoppers have been paying about $1,000 above the average manufacturer’s suggested retail price (MSRP) for more than a year, the new figures indicate that buyers now are paying just $95 over sticker price, says Kelley Blue Book.
What Is the Average Price of a New Vehicle?
The average price for a new vehicle was $48,763 in February – a decrease of 1.4% ($705) – compared to the previous month, according to a KBB news release.
Breaking down different categories of vehicles, here is the latest price information from KBB:
- For new non-luxury vehicles, the average price was $44,697, a decrease of $681 compared to the previous month.
- For new luxury vehicles, the average price was $65,534, which is $644 less than the month before.
- For new electric vehicles, the average price was $58,385. Prices were down 1.8% ($1,050) on average compared to the month before, with a large part of that attributed to price decreases at Tesla.
Let’s dive a little deeper still and look at the average prices of some major car categories as of February. We’ll also see how much their prices changed since last year.
| Car Manufacturer | February 2023 Transaction Price (Average) | January 2023 Transaction Price (Average) | February 2022 Transaction Price (Average) | Month Over Month % Change | Year-Over-Year % Change |
|---|---|---|---|---|---|
| Compact Car | $26,622 | $26,475 | $26,013 | 0.6% | 2.3% |
| Compact SUV/Crossover | $35,280 | $35,136 | $33,982 | -0.1% | 3.3% |
| Electric Vehicle | $58,385 | $59,435 | $63,134 | -1.8% | -7.5% |
| Mid-size Car | $31,533 | $31,155 | $31,793 | 1.2% | -0.8% |
| Full-size Car | $47,342 | $47,265 | $41,129 | 0.2% | 15.1% |
| Full-size Pickup Truck | $64,210 | $65,039 | $59,867 | -1.3% | 7.3% |
| Minivan | $46,631 | $47,302 | $46,806 | -1.4% | -0.4% |
| Sports Car | $47,619 | $48,331 | $45,177 | -1.5% | 5.4% |
| Subcompact Car | $24,392 | $24,310 | $22,482 | 0.3% | 8.5% |
| Hybrid/Alternative Energy Car | $36,057 | $34,991 | $33,982 | 3.1% | 6.1% |
| Luxury Car | $74,048 | $74,384 | $75,193 | -0.5% | -1.5% |
| Average | $48,763 | $49,468 | $46,297 | -1.4% | 5.3% |
Shopping for a New Car? Read This.
In this crazy car market, money expert Clark Howard doesn’t want you to overpay, so if you can get by with the car that you have, he suggests that you hold on to it until car prices drop further. To keep your current car on the road, check out this simple maintenance schedule you can follow.
If you absolutely must get a new car, here are some ways to save.
1. Shop Around.
Don’t take the first deal that comes along … or the second. Make sure you shop around to compare the best prices for similar models.
“It’s ultra-important for you to comparison shop,” Clark says.
Because new car inventories on dealer lots have been stretched, Clark suggests a somewhat unusual strategy to find the vehicle you want: travel.
“What you do is, you shop and even be willing to go farther to buy a new vehicle than you would have in the past,” Clark says. Read about Clark’s unusual tip to save money on a new car.
2. Avoid a Long Car Loan.
Clark advises against taking out an extended loan on any car, new or used.
“The longest auto loan you should ever take out is 42 months,” Clark says. “If you can’t afford the payment on a 42-month loan, then you should buy a cheaper car.”
Read about Clark’s 42-month rule for auto loans.
Final Thoughts
If you’re shopping for a new vehicle right now, Clark says he feels your pain.
But he points out that the production issues that have vexed the car market for more than two years will continue to ease. And, thankfully, this should translate into stabilization in the car market and cheaper vehicle prices for you.
Best Credit Card Sign-up Bonuses for 2023 - Team Clark spent hours reviewing the market for credit card sign-up bonuses and evaluated them according to the guidelines for usage set by money expert Clark Howard. Clark believes credit cards with exorbitant annual fees are a bad idea for most… 
Best Cell Phone Plans in 2023: The Cheapest Plan for Every Need - Team Clark ranks the best cell phone plans and deals! See our favorites for unlimited data, families and cheap plans starting at $10/month. 
