Based on newly updated data from Kelley Blue Book (KBB), electric car prices spiked even further in November 2022. If the price of new cars, in general, wasn't already high, it's rising more quickly than you may have expected.
First, it's important to reiterate that most new cars are much more expensive than they once were. The average transaction price for new cars tends to continuously rise, and we're now in the midst of much aftermath from the global COVID-19 pandemic, which has caused financial turmoil and inflation.
Just a quick internet search will tell you that the average price of a new car in the US today comes in at almost $50,000, with the average price for a luxury car at about $65,000.
Based on KBB's most recent data, EV prices went up an average of 2 percent from October to November 2022, but those transaction prices are up 9 percent year over year. As we prepare our EV lease and financing deals article each month, we've also discovered that interest rates, monthly lease payments, and down payments go up every month. It seems automakers aren't stopping or hitting a plateau, but rather, they just raise prices continuously.
At any rate, KBB says the average EV transaction price in November 2022 was $65,041, which is almost exactly on par with the average luxury car transaction price. This makes much sense since many EVs are luxury cars, and even those that aren't are still priced like luxury vehicles.
Still, in comparison to the rise in car prices as a whole, EVs are ahead, and not in a good way. The average vehicle transaction price for the market as a whole was up just 0.9 percent in November 2022 compared to the previous month. On a year-over-year basis, prices across the market are up 4.4 percent, so EV prices have essentially risen by double.
If you're considering buying an EV, it's a tough call. Should you take the plunge now before prices rise further, or is there a light at the end of the tunnel? Perhaps if you wait, prices will finally begin to drop, but how long will you have to wait, and will it ever happen? This is the perfect topic for some conversation. Leave us your wisdom in the comment section below.