People are paying record-high costs for brand new autos

An indication advertises to buy automobiles at a used automobile dealership in Arlington, Virginia, February 15, 2022.

Saul Loeb | AFP | Getty Pictures

DETROIT – If traders are searching for indicators of a recession or weakening shopper spending, they will skip over new automobile costs, which hit a brand new report in June.

Fueled by pent-up shopper demand, low automobile inventories and rising gross sales of luxurious autos, Cox Automotive reported this week the common transaction value of a brand new automobile final month was $48,083 – a 1.9% enhance from Might and better than the earlier report of $47,202 set in December.

The typical sale value was a part of a broader enhance in shopper spending in June, in keeping with the Bureau of Labor Statistics. The patron value index, a measure of on a regular basis items and providers, soared 9.1% from a yr in the past, above the 8.8% Dow Jones estimate.

A lot of the inflation rise got here from gasoline costs, which elevated 11.2% on the month and simply shy of 60% for the 12-month interval. New and used automobile costs posted respective month-to-month beneficial properties of 0.7% and 1.6%, in keeping with the BLS.

Cox stated June continued this yr’s streak of shoppers paying greater than the producer’s urged retail value, or “sticker value,” for a brand new automobile, in keeping with Cox. The automotive analysis agency reported new autos from Honda Motor, Kia and Mercedes-Benz transacted on common between 6.5% and eight.7% over MSRP.

–Jeff Cox contributed to this report.

Supply hyperlink