The Pricing Picture
According to a recent story on CNET’s Road/Show, the average price of a new vehicle in December 2020 was $40,107. That represents a jump of more than 16% in just the past five years and includes an average down payment of $4,734 plus an average monthly payment of $581 on a 70-month loan with an APR of 4.6%. Meanwhile, at Manheim, even though wholesale used-car pricing slipped slightly in December, the overall 2020 Used Car Value Index remained up by 14.2% compared to 2019.
You also have to keep in mind that those are just averages. The range-topping model for the country’s best-selling vehicle — the Ford F-150 — starts north of $70,000.
Of course, as dealers, higher prices can often be the ticket to higher profits. It’s tapping into that revenue stream that can be tricky, because with most customers, you’re asking them to spend close to a year’s worth of salary, or more, on a new car or truck. The good news is that there are some smart ways to use your vehicle comments to convince your shoppers that whatever kind of vehicle they’re buying is more than worth their money.