Average New Car Prices Reach a Record High
The analysts at Kelley Blue Book today reported the estimated average transaction price (ATP) for light vehicles in the United States was $36,113 in December 2017. New-car prices have increased by $583 (up 1.6 percent) from December 2016, while climbing 66 (up 0.2 percent) from last month.
“Average transaction prices closed the year on a strong note, rising nearly 2 percent in December 2017 to set a record high,” said Tim Fleming, analyst for Kelley Blue Book. “Incentive spending was a concern in 2017, averaging 10.4 percent of MSRP, but encouragingly, this figure held relatively flat over the final quarter of the year. In 2018, interest rate hikes could be another concern, as they threaten to increase monthly payments for consumers; however, Kelley Blue Book anticipates they will help contribute to another down year of new-vehicle sales more than impact prices, which have steadily risen along with the economy since the recession.”
Transaction prices for all of 2017 also finished 2 percent higher than last year, slightly slower growth than 2015 and 2016, which was at 2.5 percent.
Manufacturer | December 2017 Transaction | November 2017 Transaction | December 2016 | Percent 2017 to | Percent 2016 to 2017* |
American Honda (Acura, Honda) | $28,658 | $28,351 | $27,951 | 1.1% | 2.5% |
Fiat Chrysler (Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, RAM) | $37,446 | $37,411 | $36,977 | 0.1% | 1.3% |
Ford Motor Company (Ford, Lincoln) | $40,421 | $40,023 | $39,447 | 1.0% | 2.5% |
General Motors (Buick, Cadillac, Chevrolet, GMC) | $40,016 | $40,204 | $40,185 | -0.5% | -0.4% |
$25,546 | $25,356 | $24,970 | 0.7% | 2.3% | |
Nissan North America (Nissan, Infiniti) | $29,828 | $29,921 | $29,932 | -0.3% | -0.3% |
$28,688 | $28,824 | $28,646 | -0.5% | 0.1% | |
Toyota Motor Company (Lexus, Toyota) | $33,937 | $33,351 | $33,032 | 1.8% | 2.7% |
Volkswagen Group (Audi, Volkswagen, Porsche) | $40,698 | $42,943 | $37,658 | -5.2% | 8.1% |
Industry | $36,113 | $36,047 | $35,530 | 0.2% | 1.6% |
*Kelley Blue Book average transaction prices do not include applied consumer incentives | |||||
American Honda’s transaction prices rose nearly 3 percent in December 2017 with the Honda brand up 4 percent and Acura flat. The CR-V, Honda’s top seller, continued its strong run with prices up 6 percent. In addition, the redesigned Honda Odyssey showed the most improvement, rising 14 percent to top the minivan segment.
Volkswagen Group saw the biggest jump among the major manufacturers with average prices up 8 percent. The Volkswagen brand climbed 9 percent, thanks to its new SUVs, the Atlas and Tiguan, which also are gaining momentum. Porsche climbed 5 percent on the strength of its new Panamera. Audi was up 4 percent with the redesigned A5 and Q5 each rising 10 percent.
Segment | December 2017 Transaction | November 2017 Transaction | December 2016 | Percent 2017 to | Percent 2016 to 2017* |
Compact Car | $20,396 | $20,302 | $20,506 | 0.5% | -0.5% |
Compact SUV/Crossover | $28,470 | $28,565 | $27,785 | -0.3% | 2.5% |
Electric Vehicle | $37,792 | $38,485 | $37,890 | -1.8% | -0.3% |
Entry-level Luxury Car | $42,502 | $42,375 | $41,475 | 0.3% | 2.5% |
Full-size Car | $34,113 | $34,568 | $34,334 | -1.3% | -0.6% |
Full-size Pickup Truck | $47,601 | $47,333 | $47,191 | 0.6% | 0.9% |
Full-Size SUV/Crossover | $60,830 | $60,335 | $61,438 | 0.8% | -1.0% |
High Performance Car | $93,713 | $93,700 | $94,111 | 0.0% | -0.4% |
High-end Luxury Car | $97,128 | $98,620 | $93,821 | -1.5% | 3.5% |
Hybrid/Alternative Energy Car | $25,696 | $25,847 | $25,546 | -0.6% | 0.6% |
Luxury Car | $57,827 | $58,956 | $56,259 | -1.9% | 2.8% |
Luxury Compact SUV/Crossover | $44,239 | $44,496 | $43,151 | -0.6% | 2.5% |
Luxury Full-size SUV/Crossover | $83,277 | $82,213 | $83,267 | 1.3% | 0.0% |
Luxury Mid-size SUV/Crossover | $55,588 | $55,625 | $54,735 | -0.1% | 1.6% |
Mid-size Car | $25,641 | $25,525 | $25,176 | 0.5% | 1.9% |
Mid-size Pickup Truck | $32,562 | $32,400 | $32,709 | 0.5% | -0.4% |
Mid-size SUV/Crossover | $38,139 | $38,076 | $37,563 | 0.2% | 1.5% |
Minivan | $34,807 | $34,863 | $34,138 | -0.2% | 2.0% |
Sports Car | $31,279 | $31,205 | $30,340 | 0.2% | 3.1% |
Subcompact Car | $16,265 | $16,292 | $16,716 | -0.2% | -2.7% |
Subcompact SUV/Crossover | $24,310 | $24,400 | $24,422 | -0.4% | -0.5% |
Van | $34,756 | $34,655 | $34,014 | 0.3% | 2.2% |
Grand Total | $36,113 | $36,047 | $35,530 | 0.2% | 1.6% |
*Kelley Blue Book average transaction prices do not include applied consumer incentives | |||||
To discuss this topic, or any other automotive-related information, with a Kelley Blue Book analyst on-camera via the company’s on-site studio, please contact a member of the Public Relations team to schedule an interview.
For more information and news from Kelley Blue Book’s KBB.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb, follow us on Instagram at https://www.instagram.com/kbb_com/ (or @kbb_com), and get updates on Google+ at https://plus.google.com/+kbb.
About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Fair Purchase Price, which reports what others are paying for new and used cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book Co., Inc. is a Cox Automotive™ brand.
About Cox Automotive
Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, financial, retail and wholesale solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, vAuto®, Xtime® and a host of other brands. The global company has 34,000-plus team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry. Cox Automotive is a subsidiary of Cox Enterprises Inc., an Atlanta-based company with revenues exceeding $20 billion and approximately 60,000 employees. Cox Enterprises’ other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com.
SOURCE Kelley Blue Book
