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Average cost for new car surpasses $40,000

new car
Posted at 7:51 PM, Feb 15, 2021
and last updated 2021-02-15 19:51:34-05

According to Kelley Blue Book, the average price of a new car in the United States will now cost you more than an arm and a leg.

In a press release, analysts said the average price of a new vehicle in January 2021 was $40,857, which is more than 5% higher than it was last year.

KBB said in December, however, the cost of a new car fell $295.

"January 2021 prices are coming off a historical fourth quarter, with average transaction prices reaching more than $40,000 for the first time at the end of 2020," said Kayla Reynolds, industry intelligence analyst at Cox Automotive in the news release. "As we have seen the last few years, we expect transaction prices to continue to grow. While many manufacturers saw year-over-year growth, FCA/Stellantis had the largest increase at nearly 10%."

According to KBB, the most expensive car was a Volvo, which went for $49,542.

Honda came in first at $30,874, which increased by $53 compared to last month.