It’s been an ongoing trend to see the average price of a new vehicle edge upward. In 2023, that figure was around $47,000 for a light vehicle – about $10,000 above what we saw pre-pandemic.
But recent data suggests that lower priced new vehicles are experiencing a bit of a renaissance. Or, perhaps more accurately, price conscious consumers are snapping them up before they’re gone forever.
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Motor1 recently reviewed auto industry sales data for the third quarter and noted some big increases in auto buys in the sub-$20,000 price bracket – a segment that includes just a handful of vehicles. Of those, the Kia Forte sales rates were up 6%, Nissan Versas 64%, and Mitsubishi Mirage were up a stunning 114%, even as the Mirage is set to be discontinued.
CarGurus data shows that the next bracket – vehicles priced between $20,000 and $30,000 – sustained growth of almost 44%.
Meanwhile, luxury vehicle purchases in the highest price segment have fallen precipitously.
Vehicles priced at $100,000 or more have seen purchases over the last 9 months fall by almost 46% compared to a year earlier.
Kevin Roberts, CarGurus director of economic and market intelligence, said in a statement to Quartz, “After years of post-pandemic revenge spending, consumers are becoming more prudent as they face economic uncertainty, still-high interest rates, and vehicle prices that remain elevated.”
Still, the average cost of a new vehicle in August stayed consistent with 2023 figures – at around $47,000 – suggesting, perhaps, that pricing is at least stable for now.
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