KBB: New-Car Transaction Prices Rise in May

IRVINE, Calif. — The estimated average transaction price for light vehicles in the United States was $32,307 in May, according to Kelley Blue Book. The vehicle information site also reported that new-car prices increased by $653, or 2.1%, from a year ago. Compared to April, however, transaction prices were down $79.

“Small and mid-size car share has declined slightly, as car shoppers opt for small and mid-size crossovers, helping boost this month’s average transaction price,” said Karl Brauer, senior analyst for Kelley Blue Book.  “Benefitting from strength among the crossover segment, the Acura MDX now comprises more than a third of Acura’s sales, boosting the brand’s transaction prices 5.5 percent year over year and helping keep Honda’s overall ATP flat.”

The Volkswagen Group also experienced a healthy average price increase in May, up 5.5% from a year ago. “However, this is due to a decrease in the share of Volkswagen brand sales and a corresponding increase in Audi share,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “Following the re-introduction of the entry-level A3 sedan, Audi’s average transaction price is down 2.5% year over year, while the Volkswagen brand is relatively flat.”

Among domestic brands, Chrysler Group reported the most impressive gain in average transaction prices from a year ago at 4.8%. A driver of that increase was its RAM brand (up 6.4%).  The Chrysler brand also was up 7.6%, but this is primarily due to a lower mix of 200 sales since May 2013.