If you bought a new vehicle last month, odds are you paid less for it than you would have in April as the average transaction price for a new car, truck or ute dropped $251 to $48,528.
However, May marked the fifth straight month, you likely paid less than the window sticker price, which after the previous 18 months is a source of some relief. In May 2023, the average price consumers paid for a new vehicle fell to $410 below MSRP, or Manufacturer’s Suggested Retail Price, according to Kelley Blue Book.
While the amount folks actually paid on a month-over-month basis rose 0.5%, industry experts appear to believe the market is moving in a positive direction.
“The modest new-vehicle price increase in May was offset by increased incentives, so many buyers were able to find deals below sticker,” said Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox Automotive. “This is good news for consumers as manufacturers are seeing higher inventory and increased competition and need to push sales to keep inventory moving.”