Average price for new vehicle in November up 16.6% in Houston area

The Greater Houston Partnership has issued the following press release:

Houston-area auto dealers sold 20,258 new vehicles in November ’21, a decrease of 8.9% from November ’20, according to TexAuto Facts, published by InfoNation Inc. of Houston. Truck/SUV sales slipped 0.7% compared to November ’20 and car sales dropped 30.3%.  

The average price paid for a new vehicle was $48,984 in November ’21, up 16.6% from $41,994 in November ’20. The truck/SUV segment—accounting for 78.9% of new vehicles sold during November—had an average sales price of $51,668, up 14.2% from $45,240 one year ago. The average price for a new car increased from $31, 807 in November ’20 to $38,628 in November ’21.

Vehicle sales declined in mid ’20 as the COVID-19 pandemic impacted the economy, causing many consumers to postpone major purchases out of concern for losing their jobs. As the economy began to recover, those consumers were more comfortable spending savings accumulated during the pandemic, leading to record sales in spring and early summer of ’21. By fall ’21, new auto sales declined nationwide. This decrease is due to the ongoing global shortage of computer chips which has slowed vehicle production. As the supply of new vehicles decreases, average prices of new autos continue to climb.