J.D. Power: Average new vehicle transaction price dropped to $44,045

The average new vehicle transaction price has soared over the past few years, though it fell slightly in February to “just” $44,045. J.D. Power’s February 2024 U.S. Automotive Forecast noted that the decline in average pricing has led to an increase in the number of transactions, pushing spending to record levels.

While the average asking price is frustrating – and a little depressing – it’s a significant step down from the numbers we saw at the end of 2023. New car buyers were paying an average of $48,759 in December 2023, and that was even with a coinciding boost in manufacturer incentives and discounts.

Despite the still-elevated transaction prices, dealer profit actually fell last month by 31.3 percent. J.D. Power pointed to increased inventory levels and a reduction in the number of vehicles selling above MSRP. Many dealers had been marking up in-demand vehicles as supply chain disruptions and production delays made some models extremely hard to find.