The common new automobile value greater than $40,000 for the primary time in historical past on the finish of 2020, a surprising enhance from the $34,000 record we noticed in 2019. In keeping with USA As we speak, these rising transaction costs have been accompanied by larger down funds and extra borrowing, with the common new automobile costing $40,170 within the fourth quarter of the 12 months.

In This fall 2020, the common purchaser put down $4,734 – virtually a document – and financed $35,373, numbers which can be up considerably over the identical time interval in 2019. What’s extra, auto gross sales industry-wide have been down, with juggernaut Toyota seeing an 11.9-percent sales decrease in comparison with 2019. So what sorts of vehicles are driving common costs up?

Nicely, given Bentley’s record 2020 sales and Lamborghini’s best-ever six-month interval from June to December, it’s doubtless ultra-luxurious manufacturers are contributing to that greater end-of-year common, even when they’re outliers that value deep into six figures. And whereas most luxurious vehicles noticed overall sales decline in 2020, utility autos but once more represented the most important pie slice – BMW’s X3 was its high vendor, whereas the Mercedes-Benz GLC and Lexus RX took the highest spot of their respective manufacturers’ gross sales podium. Cadillac isn’t even immune; the flagship Escalade was its second-place vendor, after the midsize XT5 crossover.

Even amongst commodity manufacturers, the development towards costlier crossovers and SUVs continues. For instance, the compact Ford Escape SUV outsold each Blue Oval passenger automobile all by itself, as did the midsize Explorer. The Buick Encore GX ran away with its household’s gross sales crown, and the Rogue did the identical for Nissan. So who’s on the market driving costs up, even amid the coronavirus pandemic?

By and enormous, it appears as if it’s wealthier people. Jessica Caldwell, govt director of insights at Edmunds, advised USA As we speak that folks shopping for new vehicles are financially insulated from the pandemic. “It’s virtually like we now have two totally different nations inside this nation of people who find themselves shopping for new homes, shopping for new vehicles, versus folks who’re maybe within the service {industry} and are struggling,” Caldwell mentioned.