New vehicle prices soared to new heights in December 'driven by the increase in luxury vehicle sales'

New vehicle prices continue to rise due to strong luxury vehicle sales, according to Kelley Blue Book.

The skyrocketing prices ended the year in December 2021 with an average of $47,077 for new vehicles.

"December typically is the best month for luxury vehicle sales, and 2021 followed that trend in a big way," Kayla Reynolds, an analyst for Cox Automotive, told Kelley Blue Book. "The result was another record in overall average transaction prices, completely driven in December by the increase in luxury vehicle sales." 

The new-vehicle average transaction prices recorded in December showed a 14% increase, or $5,742, since December 2020. Month over month, that increase translates to a 1.7% ($808) jump.

Over 18% of the December 2021 total sales consisted of luxury vehicle sales. In June 2021, the same segment only contributed 16.9% to the total sales and was even lower five years ago in the same month: 15.5% of the U.S. market, according to Kelley Blue Book.

Kelley Blue Book also reported that during the last month of 2021, the average luxury buyer paid $64,864 for a new vehicle, which is more than $1,300 above sticker price.