(CNN) It wasn’t as difficult to buy a new or used car in the United States as it is today, though Improve supply issues And Inflation has begun to stabilize.
Auto transaction prices — the price you end up paying after any discounts or dealer tokens — have risen higher and faster since 2020 than at any other point in more than 35 years, according to recent data from the Bureau of Labor Statistics.
Consumer price indices for both new and used cars — the average changes in a vehicle’s transaction price over time — are much higher than they were four years ago in 2019.
There is a silver lining. BLS data shows used car inflation has slowed as dramatically since December 2022 as it increased in the months leading up to that. But used cars still have a long way to go before approaching 2019 sales prices and new car prices haven’t slowed yet.
The average transaction price for a new car has jumped nearly $12,000 in the past five years, according to data from automotive website Edmunds.com. For used cars, the average transaction price is still about $9,000 higher than it was in February 2018.
“[Prices are] “If you look back, or if you’ve ever had a transaction before in your life, all of those numbers are bad,” said Evan Drury, Director of Insights at Edmunds.com.
Car buyers haven’t seen such spikes since the 1970s and 1980s. What makes 2020 unique is how much car prices have increased in a short period of time. During the worst 12 months of the pandemic in the used car market, the index was up 45%. There hasn’t been a 12-month period since the BLS began keeping records in 1947 when used car prices have inflated more.
Recent trends in pricing have been similar across regions of the United States, although starting prices in some regions may be higher than others. Drury said preferences for more expensive cars in some regions drive these regional differences.
There is such a large market for pickup trucks and SUVs in the South, he said, that BLS data shows new-car transaction prices have risen the most since 1987.
According to Edmunds.com, the average price for a large pickup truck nationwide was $62,430 in 2022. The average price for a midsize vehicle was just $31,381.
The road to affordable prices for new and used cars is still full of potholes.
Consumer tastes shifted toward larger, more expensive pickup trucks and SUVs. New car buyers load on options, compared to the more stripped-down models available from a few years ago. Both of these trends raise prices and also create an incentive for automakers to produce rides at a higher price. The used market is still affected by the decline in rental business and car rental companies competing with consumers for the same The limited offer is for vehicles that are three to five years old.
“We have some things that are really holding back the US market,” Drury said. “I don’t see those going away any time soon.”
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”