New car prices fall below the sticker price after nearly two years.
According to data published by auto research firm Kelley Blue Book, the average transaction price for new cars has fallen below the manufacturer's suggested retail price (MSRP) for the first time in 20 months.
Car prices rose after a supply chain hitch prompted by the pandemic and increased demand for private cars.
The average transaction price for a new car in the United States fell 1.1% in March to $48,008 from $48,558 in February. However, prices in March increased by 3.8% compared to the previous year.
Major global automakers, excluding Toyota Motor Corp., reported higher first-quarter US sales on improving shipments to dealers as auto inventories improved.
"Right now, consumers in the market are finding more inventory, more choice, and dealers are more willing to deal, at least with some brands," said Rebecca Rydzewski, auto industry researcher for Kelley Blue Book's parent company Cox Automotive.
In March, the average price of a non-luxury new vehicle, which includes brands such as Chevrolet, Ford, Hyundai, and Nissan, was $44,182, a decrease of $505 compared to February, but buyers continued to pay more MSRP for luxury vehicles, according to the report.
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