UC Davis Institute of Transportation Studies

This report details how average new vehicle prices have changed over time. The author notes that since 1970 there have been very significant changes in automobiles and light trucks due to new government emissions control, safety and fuel economy regulations. Yet the affordability of vehicles has not changed dramatically, and in fact may have improved for consumers due to flexible financing arrangements and other incentives. The author concludes that the sweeping regulations made by government agencies have not led to pricing of vehicles outside the reach of consumers’ pocketbooks. Two price measures were used in the analysis: Manufacturer’s Suggested Retail Price and Average Transaction Price.