New Car Transaction Prices Set a New Record in July
New car buyers spent an average of $34,264 per transaction last month — setting a new record for the month – according to a new estimate from Kelley Blue Book.
KBB said that new-car prices have increased by $832 (up 2.5 percent) from July 2015, and $82 (up 0.2 percent) from just last month.
Most domestic and foreign brands saw increases. Among automakers, only Nissan North America was down (by almost 1 percent) since July 2015.
How are people affording cars at these prices?
As KBB points out, low interest rates, longer loan terms and increased leasing help keep the payments down – but this doesn’t make these cars affordable.
After all, consumers are still signing up for $34k vehicles. Creative financing only creates the appearance of affordability. In the long run, buying (or leasing) vehicles this expensive will eat into our ability to fund an education or save for retirement, among other things.