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The Greater Houston Partnership has issued the following press release:
Houston-area auto dealers sold 21,733 new vehicles in December ’21, an increase of 0.8 percent from December ’20, according to TexAuto Facts, published by InfoNation Inc. of Houston. Truck/SUV sales rose 4.4 percent compared to December ’20 and car sales dropped 9.9 percent.
The average price paid for a new vehicle was $49,364 in December ’21, up 15.0 percent from $42,941 in December ’20. The truck/SUV segment—accounting for 78.1 percent of new vehicles sold during December—had an average sales price of $51,693, up 13.5 percent from $45,546 one year ago. The average price for a new car increased from $33,942 in December ’20 to $40,190 in December ’21.
Vehicle sales began to decline in spring ’20 as the COVID-19 pandemic impacted the economy. This caused 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.