The average transaction price for an electric vehicle this past August—that is, the average price that a real person paid to get the vehicle off the lot—was $66,524, according to Kelley Blue Book. A full-size pickup truck (presumably powered by gasoline) was less costly: $63,456. (Here’s something random to consider: That is a $3,068 difference. If gasoline is $5 per gallon, then that would buy 613.6 gallons. If the vehicle gets 18 mpg, then one could drive said pickup 11,044 miles.)
Next fall Chevy is to bring out the Equinox EV with an announced, anticipated, starting price of $30,000. The company will also be bringing out the Blazer EV, that has an “estimated MSRP starting around $44,995.” The photo on the webpage has a photo of a preproduction version of the Blazer EV. The “as shown” price for that midsize SUV: $67,990.
Somehow that $30,000 is likely to be closer to $40,000 for someone going for an average transaction.
Better (1) have lots of cash—or credit—and (2) be flexible in your vehicle choice
By Gary S. Vasilash
According to Kelley Blue Book automobile prices hit an all-time high in July—and affordability hit a 10-year low.
Here’s a number that is undoubtedly making OEMs and dealers happy and consumers not:
Stick a $ in front of that and that’s the average transaction price—a.k.a., what people actually pay—for a new vehicle.
This, according to KBB, is $3,223 more than it was one year ago and $402 more than in June 2021.
What’s more, incentives are down, therefore accounting, in part, for the decline in profitability.
That is, in July 2021 the average incentive was 5.9% of the average transaction price. In July 2020 it was 10.1%.
And while probably not as crazy as things are in residential real estate, it is a bit of a surprise to learn that the average price paid was above the manufacturers’ suggested retail price.
You read that right: people paid more than MSRP.
Another factor that plays into this price rise is the lack of inventory. While the last time you went out for a new vehicle the dealer lot was probably jammed with new vehicles, nowadays it has the look of a church parking lot on a Monday.