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Prices for New Vehicles Hit Record High: Kelley Blue Book

The transaction price for a new vehicle has increased more than 14 percent on average over the last year, according to a report by a prominent automotive research company, which said that the record price hike was mostly due to supply constraints and luxury vehicle sales. “New-vehicle average transaction prices (ATPs) increased further into record territory in December 2021 to reach $47,077,” said the Kelley Blue Book report published Tuesday. The price went up by $5,724 from December 2020, and registered a month-over-month increment of 1.7 percent, or $808. In spite of high consumer demand, the supply of new cars was limited, forcing dealerships to forgo discounts and, in some cases, to increase prices above the manufacturer’s suggested retail price (MSRP). As the pandemic-related lockdowns hit the economy, people stayed home, traveled less, and depended more on their computers and mobile devices. Auto manufacturers suspended production owing to lesser demand …

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