Edmunds.com reports that the average transaction price for new vehicles will reach a record of $34,077 in 2016, up 2.7 percent over 2015.
Transaction prices are expected to continue to increase in 2017, with the average cost of new vehicles coming in at $35,000.
Edmunds attributes the price increase to the growth in sales of light trucks, a segment that makes up 62 percent of the overall market. Trucks are typically more expensive and have more options available compared to passenger vehicles.
The automotive information and shopping site also indicates that the lease rate for new cars hit an all-time high of 31 percent in 2016 and is projected to grow in 2017. More accessible financing options coupled with low interest rates are leading buyers to lease more expensive vehicles.
The increase in the price of new vehicles is also affecting the average cost of used cars as the supply is outstripped by the demand for more affordable means of transportation.
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