New car prices are on track to reach record heights this month despite ever-increasing interest rates and inflation. Strong demand continues to push prices, reaching an average of $46,259, an 11.5% year-over-year increase. Unfortunately, inventory has not yet returned to adequate levels to meet consumer demand.
A rising tide. In addition to the undeterred desire for new vehicles, the used car market is also performing exceptionally well. Through July 2022, used prices were 31.1% higher than in 2021. A slight price decline in July kept prices close to the high water mark of December 2021.