Even casual observers of the automotive industry have surely noticed how quickly the average cost of a new car in America has risen since the global Covid-19 pandemic. Nearly every single month has brought news of a new high pricing bar, and while there have been signs that things may cool off, top sales executives at Toyota don’t seem to think that’s going to happen. Speaking to reporters while giving an update on Toyota and Lexus sales results, Jack Hollis, head of sales for Toyota Motor North America, suggested that average transaction prices “will continue to grow” above $50,000.
If you think that sounds crazy, well, you’re not alone. But you may also be surprised to hear that we’re not very far off that number right now. As of January of this year, the average transaction price for a new car in America sat at $49,507. And yes, that’s a record. Singing out luxury models like those sold by Lexus, the average price last sat at a devilish $66,660.
Hollis further went on to say that the used vehicle market will also continue with strong demand, due in no small part to the continuing lack of enough new vehicles to sell. Americans would buy as many as 17 million new vehicles this year, Hollis said, but instead, due to supply constraints, “we’ll sell around 15 [million]so that means there’s another 2 million vehicles added to pent-up demand.” Put another way, don’t expect used cars to get any cheaper, either, although some models have come off their staggering highs of a year ago.
Fortunately, not all used vehicles are priced through the roof. If you need a more reasonably priced set of new-to-you wheels, take a look at our list of the best used cars to buy in 2023. For more on Toyota’s outlook for 2023, head on over to Automotive News. And if you’re in the market for a new car … hold on to your butts.