The average price United States buyers paid for a new vehicle was over US$50,000 (A$76,822) for the first time last month, due to rising electric vehicle and luxury sales.
The average transaction price for new vehicles was $50,080 in September, up 2.1% from August and rising 3.6% year-over-year, according to Cox Automotive. Electric vehicles’ U.S. market share reached a record 11.6%.
“While there are many affordable options out there, many price-conscious buyers are choosing to stay on the sidelines or cruising in the used-vehicle market. Today’s auto market is being driven by wealthier households who have access to capital, good loan rates and are propping up the higher end of the market,” wrote Cox Automotive executive analyst Erin Keating.
“Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new-vehicle ATP into uncharted territory.”
Electric vehicle sales reached a record 437,487 across the third quarter. The U.S.’ $7,500 tax incentive for EV purchases expired on 30 September, sending sales up almost 30% as consumers rushed to buy.
Tata Motors, which owns Jaguar Land Rover, had the highest average transaction price among manufacturers at $102,096. Subaru’s was the lowest, at $36,092.
Meanwhile, a record share of subprime auto loans are at least 60 days overdue on their payments, reaching more than 6% this year, the Wall Street Journal reported.
Around 1.73 million U.S. vehicles were repossessed last year, the highest number since 2009 during the global financial crisis.
Americans owe more than $1.66 trillion in auto debt, according to a September Consumer Federation of America report.
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