How Much Do New Car Prices Change From Month to Month?
Do new car prices increase or decrease each month? If you’re looking for a new car, you’re probably wondering how much they change in one month compared to the next. The average price of a new car in the U.S. went up 12.1% from September 2020 to September 2021, or $4,872 over the same period last year. This increase was due to different factors this time around, including a shortage of chips and supply chain issues.
The lack of incentives is one reason for the higher new car price, affecting both luxury and affordable vehicles. Cash companies are typically willing to knock off the sticker price if the buyer is willing to pay cash. Automakers aren’t providing incentives for new cars anymore, and a shortage of chips means they have fewer vehicles to sell. Additionally, incentive spending has fallen to an all-time low, amounting to only 5.2% of average transaction prices in September. Automakers used to spend as much as 10% of the price of a new car to attract buyers.
Another factor that impacts the new car price is the number plate of the vehicle. Traditionally, the number plate of a new car changes each month. New cars are introduced in September and March, and they’re usually the most popular months for new car sales. However, June and December are also prime months for buying a new car. There’s a good chance a new car will go on sale in these months – especially if it’s in your budget.