U.S. new-vehicle transaction prices rose in May along with manufacturer incentives, which increased to their highest level in a year, Kelley Blue Book said.
The balance between the two helped drive sales as carmakers with higher inventories looked to incentivize consumers.
“This is good news for consumers as manufacturers are seeing higher inventory and increased competition and need to push sales to keep inventory moving,” said Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox Automotive.
The average transaction price still stayed under manufacturer’s suggested retail price for the fifth consecutive month as it rose 0.5% month-over-month and 3% year-over-year to $48,528, Kelley Blue Book reported. The year-over-year increase was the smallest so far this year.
The average price dropped to $410 below MSRP; a year earlier, it was $637 above MSRP.
Manufacturer incentives jumped to 4% of the average transaction price to an average $1,914.
May sales volume rose 0.7% month-over-month and a whopping 22% year-over-year, which Kelley Blue Book said beat most forecasts. It credited strong fleet deliveries in part.
The average nonluxury new-vehicle price was up to $44,960, a 3.7% year-over-year jump and $402 below MSRP, while the average luxury price was $64,396, up $239 month-over-month. Luxury sales accounted for 18.4% of new-vehicles deliveries, continuing to drive overall prices, though that share is trending down.
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