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Pandemic-induced ATPs receding as inventories, incentives ascend.
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Average vehicle transaction prices continue to soar, according to data released by Kelley Blue Book.
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The most recent Consumer Price Index from the U.S. Bureau of Labor Statistics shows a slight but promising decline in used car prices.
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September new light-vehicle sales fell for the 5th consecutive month to a SAAR of 1.2 million units, reported the National Automobile Dealers Association (NADA).
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With cars expected to make up only 31% of July sales, the industry's average transaction price climbed by $985 from a year ago to $35,359.
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May's average transaction price for light vehicles rose by a healthy 3%, even as new-vehicle demand is expected to falter in 2018, according to the vehicle information site.
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Less price-sensitive buyers splurged for the latest models in April, with the industry’s average transaction price rising 2% from a year ago despite rising fuel prices.
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Transaction prices have remained unaffected so far this year by the expected slowdown in new-vehicle demand. Notable increases were recorded by American Honda, Toyota Motor Co., and Volkswagen.
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New-vehicle transaction prices are being driven higher by the shifting sales mix away from cars. Ford’s strong mix of F-Series Super Duty sales for the month helped drive up the automaker’s average transaction price by nearly 3%.
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Transaction prices continue to rise at a slower pace, with the third-quarter average up just 1% after averaging 3% gains in the first half of the year. And while KBB expects solid sales in October, flat transaction prices combined with ever-growing incentive spending signal headwinds for the new-vehicle market as the year nears its close.
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