Two Things If You’re Going to Buy a New Vehicle

Tips to consider

By Gary S. Vasilash

Whether it is a case of pent-up demand, regular demand or necessity, it may be that you’re going to be going out to get yourself a new set of wheels.

Based on information released by Kelley Blue Book about the state of affairs that existed in the U.S. market during the month of November, here are a couple of things you should have in mind:

  1. Have lots of money or good credit. That’s because KBB found the average transaction price (ATP) of a non-luxury vehicle was $43,144. A record high. People were paying $900 over sticker (a.k.a., “MSRP”). People have been paying over MSRP for the past six months. And remember when there used to be all manner of cash incentives? Good luck. But let’s say you’re in the market for a luxury vehicle. The average price there is $61,455.
  2. While it is still going to cost a lot, you might consider the type of vehicle that you’re buying from the point of view of price. For example, KBB calculated that the ATP for a car was $41,026, $45,201 for an SUV, $46,523 for a van, and $54,462 for trucks. The least expensive vehicle is a compact car at $25,650—which is 15.7% more than it cost in November 2020. And good luck trying to find one—or any car, for that matter, as OEMs are concentrating on building vehicles with higher content and prices because, obviously, they make more money on them.

Either way: Plan to spend more than you were planning to spend.

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