ATLANTA — A new report finds car prices remain elevated, and buyers in Georgia should not expect significant relief anytime soon.
According to the report, the average price of a new vehicle is around $50,000, while the average used vehicle sells for nearly $27,000.
Sean Tucker, managing editor for Kelley Blue Book and AutoTrader, says consumer demand is helping drive prices higher.
“Luxury cars are selling very well, luxury trims of large trucks are selling very well, and that’s pulling the average up,” Tucker said.
Tucker says automakers have reduced the number of lower-cost vehicles available and are focusing more on higher-priced models.
“What we’ve seen is a lot of some $25,000 models cut from the line up and a lot of new models with prices over $60,000 because they’re all just chasing after the same sort of buyer,” Tucker said.
He said those buyers are primarily luxury vehicle customers.
Tucker does not expect vehicle prices to decline significantly.
“No, we’re just in a market where the automakers have eliminated a lot of their least expensive models and they’re building more expensive cars than ever before, and you can only buy what’s on the lot,” Tucker said.
The report found the average price of a new vehicle has increased by about 3.5% annually.
Tucker said buyers priced out of the new vehicle market are increasingly turning to used vehicles.
“All of the people that are priced out of the new car market are going into the used car market and it creates more debt and price pressure,” Tucker said.
He said there are still affordable options available in the used car market, depending on the brand.
The report also found many automakers are cutting production of vehicles priced below $25,000 while increasing production of models that cost more than $60,000.
