Sticker Shock! The Average New Car Price Is Now Over $40k

Sticker shock is a real thing. The average new car price in the US is now over $40,000.

To me, these kinds of prices are strange considering the US is trying to recover from the worst economic turndown in decades due to, well you know. In South Dakota, we have been largely isolated from the worst of it, but many other states are struggling to bounce back.

In spite of that, Kelly Blue Book says the average new car price for January came in at $40,857. That's up 5.5% or $2110 from January 2020. The average new car payment is $581 per month.

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The price biggest gains came in the Luxury Car and Minivan segments, rising 11.75% and 12.25% respectively. High-end Luxury Cars and High-Performance Cars saw the steepest drop, down -2.55% and -16.63% respectively.

The automaker with the highest average is Daimler, the parent company of Mercedes-Benz with a price of $65,754. The lowest is Mitsubishi with an average price of $22,841.

If you think there are better deals to be had in a used car, you might be in for a surprise as those prices are also at record highs.

According to CarGurus, the average used car price in January 2021 was $22,413, up 8.37% from January 2020. Pick-up trucks saw the biggest year-over-year gains at 20.17% followed by SUVs at 16.3% and coupes at 10.57%.

Fortunately, South Dakota has the second-lowest average car insurance prices, so you can use some of that savings toward your car payment.