![\"Buying](\"https:\/\/www.thedetroitbureau.com\/wp-content\/uploads\/2015\/06\/Buying-a-car.jpg\")
The overall average transaction price rose to $47,148 last month, which is the second highest total after December\u2019s number of $47,202. On a month-over-month basis, prices rose what some would view as a paltry 1%, but again that\u2019s nearly $500.<\/p>\n\n\n\n
The increase is a result of a big jump in non-luxury vehicle ATPs, which were up more than $700 while luxury and electric prices dropped. Perhaps more importantly, analysts at Kelley Blue Book and Cox Automotive believe not much is going to change in the near term.<\/p>\n\n\n\n
“Prices for both new and used vehicles are showing signs of stabilizing, and price growth will likely decline over the course of the summer as the anniversary of the ‘big squeeze’ in inventory passes,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. <\/p>\n\n\n\n
“However, no one should expect price drops, as tight supplies in the new market will hold prices at an elevated level into 2023.”<\/p>\n\n\n\n
![\"KBB](\"https:\/\/www.thedetroitbureau.com\/wp-content\/uploads\/2022\/06\/KBB-May-2022-ATP-chart-1024x761.jpg\")
<\/figure><\/div>\n\n\n\nStill over sticker<\/h2>\n\n\n\n
While there have been pricing declines in some segments, one thing remains unchanged: everyone\u2019s paying more than the sticker price on average. <\/p>\n\n\n\n
In May, new vehicles from Honda, Land Rover and Mercedes-Benz were transacting on average between 6.1% and 9.3% over MSRP. On the other side of the spectrum, Buick and Lincoln were selling at nearly 1% below MSRP.<\/p>\n\n\n\n
The majority of dealers are getting more than the manufacturer\u2019s suggested retail price, or MSRP, and have been for all of 2022. New-vehicle inventory days’ supply stayed in the mid-30s in May \u2013 holding steady since mid-January \u2013 while customer demand remained stable. These conditions enabled most dealers to continue selling inventory at or above the MSRP.<\/p>\n\n\n\n
![\"KBB.com](\"https:\/\/www.thedetroitbureau.com\/wp-content\/uploads\/2022\/06\/KBB.com-segment-ATP-May-2022-chart-1024x974.jpg\")
<\/figure><\/div>\n\n\n\nWhat we\u2019re paying<\/h2>\n\n\n\n
The average price paid for a new non-luxury vehicle last month was $43,338, up $709 from April. Car shoppers in the non-luxury segment paid on average $1,030 above sticker price. Last year at this time, buyers were paying more than $400 under MSRP.<\/p>\n\n\n\n
In May 2022, the average luxury buyer paid $65,379 for a new vehicle, down $511 month over month but still $1,071 above sticker price. For comparison, luxury vehicles were selling for nearly $1,300 under MSRP one year ago. Luxury vehicle share remains historically high, but decreased to 17.3% of total sales in May, down slightly from 17.4% in April. For comparison, luxury share in May 2021 was 15.9% and, pre-pandemic, luxury share in May 2019 was 13.1% of the total market. <\/p>\n\n\n\n
EV prices dropped again in May compared to April, as more lower-priced models enter the market and offset the many luxury EVs already available. The Chevrolet Bolt, with average transaction prices below $40,000, is available on dealer lots after an extensive recall, and the new Kia EV6 is selling well. Even Tesla had slightly lower ATPs month over month in May. <\/p>\n\n\n\n
Still, the average price for a new electric vehicle \u2014 more than $64,000 according to Kelley Blue Book estimates \u2014 is well above the industry average and more aligned with luxury prices than mainstream prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
Buyers of new vehicles paid more for those cars, trucks and crossovers on average in May than they did in April \u2014 to the tune of about $472. The big jump came in non-luxury vehicles, which were up overall while luxury and electric prices dropped. Find out more about why prices increased at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":214979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,1347],"tags":[1157,6441,6440,6439,6442],"make":[],"post-state":[],"category_old":[],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/226341"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=226341"}],"version-history":[{"count":4,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/226341\/revisions"}],"predecessor-version":[{"id":226371,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/226341\/revisions\/226371"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/214979"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=226341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=226341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=226341"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=226341"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=226341"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=226341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}