When will new car prices drop? Not anytime soon

Hannah Elliott

Last year’s record-high car prices won’t be dropping soon.   

In December, the average price of a new vehicle in the U.S. hit $47,077, up 14% ($5,742), compared to 2020, and up 1.7% ($808) from the previous month, according to Kelley Blue Book. The rise came as U.S. inflation ended 2021 at sizzling levels levels — a 39-year high of 7% — with gasoline topping the charts with a 49.6% price increase from the prior year.

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