Average New Car Price Hit $41K in May

June 29, 2021—People are continuing to spend more and more money for new cars.

The average price paid for new cars and trucks purchased in the month of May hit $41,263, according to a Fox Business report citing Kelly Blue Book. That's an all-time high for the month of May and represents a 1.21 percent increase from the month of April and a 5.43 percent jump from May 2020. It also falls just short of the all-time monthly record of $41,335, which was set last December. 

The increase was consistent across all makes and size classes, with subcompacts leading the way with a near-4 percent increase. According to the report, the increase is due in part to the ongoing semiconductor chip shortage, which is causing shortages of "more popular styles and used cars."