---
title: Average Used Car Prices Soar to Nearly $30,000
description: Average used car prices are nearly $30,000, and average new car prices are creeping closer to $50,000, according to Kelley Blue Book data.
authors:
  - name: Adam Hardy
    role: Lead Data Reporter
    url: https://money.com/author/adam-hardy/
    bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers.
    education: University of South Florida, BA, Magazine Journalism
    at_money_since: 2021
    articles: 501
    covers:
      - Economy and Politics
      - Banking
      - Business
      - Career Advice
      - Credit
      - Credit Cards
      - Debt
      - Education
      - Health and Wellness
      - Housing
      - Identity Theft
      - Insurance
      - Investing
      - Lifestyle
      - Loans
      - Mortgages
      - Personal Finance
      - Pets
      - Professional Services
      - Retirement
      - Shopping
      - Taxes
      - Technology
    also_seen_in:
      - The Penny Hoarder
      - Forbes Advisor
      - Creative Loafing
      - The New York Times
      - The Washington Post
      - Bloomberg
      - Harvard Law School
      - The Federal Register
      - National Consumer Law Center
      - CBS News
      - Becker's Hospital Review
      - Business Insider
      - Mother Jones
      - The Week
      - Fortune
      - The Philadelphia Inquirer
      - National Association of Student Financial Aid Administrators (NAFSAA)
      - Education Advisory Board (EAB)
      - The Institute for College Access & Success (TICAS)
      - This Morning with Gordon Deal
      - Empower
      - Reddit
    social:
      - https://www.x.com/hardyjournalism
      - https://www.linkedin.com/in/hardyjournalism/
published: '2022-01-14T20:35:37.000Z'
modified: '2024-01-10T13:11:08.000Z'
section: Economy and Politics
tags:
  - car prices
  - cars
word_count: 678
canonical: https://money.com/new-used-car-prices-december-2021/
type: Article
source: structured-blocks
---

> **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/).

![Cars for sale in a certified used car dealership](https://img.money.com/2022/01/News-Average-Car-Prices-2022.jpg)

Car buyers just can’t seem to catch a break. Average prices for new and used vehicles continue to skyrocket. Meanwhile, the auto industry is raking in record revenues despite selling fewer vehicles.

The average used car sold for a whopping $29,969 in December 2021, according to data from the auto research and buying site [Edmunds](https://www.edmunds.com/) shared with *Money*. That's up from an average of $23,185 one year prior, for an increase of nearly 30%.

According to data released this week by [Kelley Blue Book](https://mediaroom.kbb.com/2022-01-11-Strong-Luxury-Vehicle-Sales-in-December-2021-Drive-Average-New-Vehicle-Prices-Further-into-Record-Territory,-According-to-Kelley-Blue-Book) (KBB), the price of the average used car — which has more than 69,000 miles — was slightly lower in December 2021 than the figure from Edmunds. But it's still very expensive in the grand scheme of things, with the average used car running $28,105.

As for new vehicle car prices, they're soaring to new highs as well. The average price for a new vehicle in December 2021 was $47,077 according to KBB. That marks the ninth consecutive month of price increases and the highest price ever recorded by the auto research company.

By all accounts, 2022 will be another very [challenging year for car buyers](https://money.com/how-to-buy-a-car-in-2022/). Prices are likely to keep rising, with the average costs for used and new cars creeping closer to $30,000 and $50,000, respectively.

“These increases are changing the marketplace and are also likely changing who can afford to buy,” says Cox Automotive Senior Economist Charlie Chesbrough in a [webcast](https://www.coxautoinc.com/market-insights/cox-automotive-industry-insights-2022-webcast-replay-available/) released Friday. Cox Automotive is the parent company of Kelley Blue Book.

For new vehicles, prices in December 2021 are up about 14% from the previous year, an increase of $5,742, according to KBB. Compared to the previous month, that’s a 1.7%, or $808, price increase.

The average sales price for used cars jumped $536 from November 2021 to December 2021, KBB reported. In December 2020, used cars sold for $21,979, on average. In other words, used vehicles were $6,126 cheaper roughly a year ago.

What’s more, on average, new vehicle buyers spent between $900 and $1,300 *above* the sticker price in December 2021, depending on the type of vehicle.

The drastic increase in car prices has contributed to the overall [7% inflation rate](https://money.com/inflation-gas-meat-car-prices/) for consumer goods, with used car and truck prices up 37% over the past year, according to separate data from the Bureau of Labor Statics.

## What’s behind high car prices?

According to industry economists, the pandemic has severely mucked with the supply of new vehicles. That, in turn, sent consumers flocking to purchase used vehicles. Now, the supply of new and used vehicles alike is low. So the prices for both continue to rise.

More specifically, the microchip shortage in the summer of last year drastically affected the amount of new vehicles that were arriving on the lots. Manufactures often decided to funnel their limited microchips into making higher-end vehicles with higher profit margins to compensate. As a result of focusing on luxury vehicles, fewer affordable options have been available at dealerships, and sales prices are ballooning.

In December 2021, the average buyer paid nearly $65,000 for a new luxury vehicle, whereas the average non-luxury vehicle cost about $43,000, per KBB. Average prices have soared particularly high for certain manufactures. For example, the average new vehicle transaction price across all makes from Tesla Motors and General Motors were 20% higher in December 2021 than a year prior.

Despite limited supply and fewer cars being sold, auto industry revenue is way up.

“The rise in vehicle prices is offsetting the loss in sales volume,” Chesbrough said.

In 2021, industry revenue reached $649 billion, which is nearly $100 billion higher than 2020 and more than 2019 revenue by nearly $2 billion.

And that’s with nearly 2 million fewer vehicles sold in 2021 versus 2019, according to Cox Automotive data.

“The market right now belongs to sellers,” Chesbrough said. “As a result, vehicle buyers looking for good deals will be challenged.”

```json
{
  "@context": "https://schema.org",
  "@graph": [
    {
      "@type": "BreadcrumbList",
      "@id": "https://money.com/new-used-car-prices-december-2021/#breadcrumb",
      "itemListElement": [
        {
          "@type": "ListItem",
          "position": 1,
          "name": "Home",
          "item": "https://money.com"
        },
        {
          "@type": "ListItem",
          "position": 2,
          "name": "Economy and Politics",
          "item": "https://money.com/economy-and-politics/"
        },
        {
          "@type": "ListItem",
          "position": 3,
          "name": "Auto Industry",
          "item": "https://money.com/auto-industry/"
        },
        {
          "@type": "ListItem",
          "position": 4,
          "name": "Average Used Car Prices Soar to Nearly $30,000"
        }
      ]
    },
    {
      "@type": "WebSite",
      "@id": "https://money.com/#website",
      "url": "https://money.com",
      "name": "Money",
      "publisher": {
        "@id": "https://money.com/#organization"
      }
    },
    {
      "@type": "WebPage",
      "@id": "https://money.com/new-used-car-prices-december-2021/#webpage",
      "url": "https://money.com/new-used-car-prices-december-2021/",
      "name": "Average Used Car Prices Soar to Nearly $30,000",
      "isPartOf": {
        "@id": "https://money.com/#website"
      },
      "datePublished": "2022-01-14T20:35:37.000Z",
      "mainEntity": {
        "@id": "https://money.com/new-used-car-prices-december-2021/"
      },
      "inLanguage": "en-US",
      "breadcrumb": {
        "@id": "https://money.com/new-used-car-prices-december-2021/#breadcrumb"
      },
      "dateModified": "2024-01-10T13:11:08.000Z"
    },
    {
      "@type": "Article",
      "headline": "Average Used Car Prices Soar to Nearly $30,000",
      "articleSection": "Economy and Politics",
      "image": [
        {
          "@type": "ImageObject",
          "url": "https://img.money.com/2022/01/News-Average-Car-Prices-2022.jpg",
          "width": 2376,
          "height": 1584,
          "caption": "News-Average-Car-Prices-2022"
        }
      ],
      "author": [
        {
          "@type": "Person",
          "name": "Adam Hardy",
          "url": "https://money.com/author/adam-hardy/",
          "@id": "https://money.com/author/adam-hardy/#author",
          "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers.",
          "image": "https://img.money.com/2022/01/a_adam-hardy.jpg?quality=85&w=400&h=440&crop=1",
          "email": "adam.hardy@money.com",
          "jobTitle": "Lead Data Reporter",
          "alumniOf": "University of South Florida, BA, Magazine Journalism",
          "subjectOf": [
            {
              "@type": "WebPage",
              "url": "https://www.thepennyhoarder.com/",
              "name": "The Penny Hoarder"
            },
            {
              "@type": "WebPage",
              "url": "https://www.forbes.com/advisor/",
              "name": "Forbes Advisor"
            },
            {
              "@type": "WebPage",
              "url": "https://creativeloafing.com/",
              "name": "Creative Loafing"
            },
            {
              "@type": "WebPage",
              "url": "https://www.nytimes.com/2023/05/01/opinion/biden-trump-harris-2024.html",
              "name": "The New York Times"
            },
            {
              "@type": "WebPage",
              "url": "https://www.washingtonpost.com/opinions/2022/12/26/flexible-spending-account-is-flawed-benefit/",
              "name": "The Washington Post"
            },
            {
              "@type": "WebPage",
              "url": "https://www.bloomberg.com/opinion/articles/2025-09-20/-100-000-h-1b-visa-fee-is-a-gamble-that-could-protect-us-jobs",
              "name": "Bloomberg"
            },
            {
              "@type": "WebPage",
              "url": "https://petrieflom.law.harvard.edu/2024/02/08/whoop-and-the-irs-how-tax-avoidance-helps-health/",
              "name": "Harvard Law School"
            },
            {
              "@type": "WebPage",
              "url": "https://www.federalregister.gov/documents/2025/12/29/2025-23853/weighted-selection-process-for-registrants-and-petitioners-seeking-to-file-cap-subject-h-1b#footnote-33-p60883",
              "name": "The Federal Register"
            },
            {
              "@type": "WebPage",
              "url": "https://www.nclc.org/resources/what-states-can-do-to-stop-credit-reporting-abuses/",
              "name": "National Consumer Law Center"
            },
            {
              "@type": "WebPage",
              "url": "https://www.cbsnews.com/news/open-enrollment-irs-changes-fsa-hsa-flexible-spending-account-health-savings-account-2023/",
              "name": "CBS News"
            },
            {
              "@type": "WebPage",
              "url": "https://www.beckershospitalreview.com/rankings-and-ratings/20-top-us-hospitals-for-2025-per-money/",
              "name": "Becker's Hospital Review"
            },
            {
              "@type": "WebPage",
              "url": "https://www.businessinsider.com/using-chatgpt-ai-write-cover-letters-job-applications-2023-2",
              "name": "Business Insider"
            },
            {
              "@type": "WebPage",
              "url": "https://www.motherjones.com/politics/2026/04/a-major-strike-of-beef-workers-pauses-in-colorado-but-workers-say-the-fight-isnt-over/",
              "name": "Mother Jones"
            },
            {
              "@type": "WebPage",
              "url": "https://theweek.com/business/economy/job-market-frozen-thawing",
              "name": "The Week"
            },
            {
              "@type": "WebPage",
              "url": "https://fortune.com/2023/12/20/workers-lose-money-on-unused-fsa-accounts-deadlines-what-companies-should-do/",
              "name": "Fortune"
            },
            {
              "@type": "WebPage",
              "url": "https://www.inquirer.com/opinion/editorials/liberation-day-tariffs-economy-stock-market-trump-20250401.html",
              "name": "The Philadelphia Inquirer"
            },
            {
              "@type": "WebPage",
              "url": "https://www.nasfaa.org/news-item/37955/Student_Loan_Changes_2026_New_Repayment_Options_Taxable_Forgiveness_and_More_on_the_Way",
              "name": "National Association of Student Financial Aid Administrators (NAFSAA)"
            },
            {
              "@type": "WebPage",
              "url": "https://eab.com/resources/blog/adult-education-blog/graduate-funding-shift-pricing-aid-strategies-aligned/",
              "name": "Education Advisory Board (EAB)"
            },
            {
              "@type": "WebPage",
              "url": "https://ticas.org/california/state-private-loans-protections-blog/",
              "name": "The Institute for College Access & Success (TICAS)"
            },
            {
              "@type": "WebPage",
              "url": "https://thismorningwithgordondeal.com/b/This-Morning-with-Gordon-Deal-August-04,-2026/421564107823081285.html",
              "name": "This Morning with Gordon Deal"
            },
            {
              "@type": "WebPage",
              "url": "https://www.empower.com/the-currency/life/pumpkin-spice-season-spending",
              "name": "Empower"
            },
            {
              "@type": "WebPage",
              "url": "https://www.reddit.com/r/Economics/comments/1va10oa/comment/p0i9bju/",
              "name": "Reddit"
            }
          ],
          "sameAs": [
            "https://www.x.com/hardyjournalism",
            "https://www.linkedin.com/in/hardyjournalism/"
          ],
          "worksFor": {
            "@id": "https://money.com/#organization"
          }
        }
      ],
      "publisher": "https://money.com/#organization",
      "datePublished": "2022-01-14T20:35:37.000Z",
      "description": "Average used car prices are nearly $30,000, and average new car prices are creeping closer to $50,000, according to Kelley Blue Book data.",
      "abstract": "Average used car prices are nearly $30,000, and average new car prices are creeping closer to $50,000, according to Kelley Blue Book data.",
      "@id": "https://money.com/new-used-car-prices-december-2021/",
      "inLanguage": "en-US",
      "dateModified": "2024-01-10T13:11:08.000Z",
      "wordCount": 678,
      "keywords": [
        "car prices",
        "cars"
      ],
      "about": [
        {
          "@type": "Thing",
          "name": "Political economy",
          "sameAs": [
            "https://en.wikipedia.org/wiki/Political_economy"
          ]
        },
        {
          "@type": "Thing",
          "name": "Automotive industry",
          "sameAs": [
            "https://en.wikipedia.org/wiki/Automotive_industry"
          ]
        },
        {
          "@type": "Thing",
          "name": "Vehicle",
          "sameAs": [
            "https://en.wikipedia.org/wiki/Vehicle"
          ]
        }
      ]
    }
  ]
}
```