Skip to main content

The cost of buying a new vehicle in the United States is set to hit an all-time high in June as automakers faced with raw material shortages ramp up prices to cater to healthy demand, an industry report showed on Friday.

Buyers will have to shell out a record $45,844 on average in June, 14.5% higher than last year, according to the report from auto industry consultants J.D. Power and LMC Automotive.

“Vehicles continue to sell quickly and a significant number of vehicles are being ordered - or purchased - by buyers before they arrive at the dealership,” Thomas King, president of the data and analytics division at J.D. Power, said in a statement.

Consumer demand is set to remain “considerably higher” than supply, Thomas added, but rising interest rates and economic concerns may hit the auto industry.

Retail sales of new vehicles in June are expected at 965,300 units, an 18.2% drop, the report showed.

The seasonally adjusted annualized rate for total new vehicle sales in the United States is expected to be 13.1 million units in June, down 2.3 million units from last year.

Global auto sales this year are expected to be flat at 81.4 million units, the report said, as chip shortages and China lockdowns hit sales volumes. (Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe