New Car Sales, Prices Rise

February new vehicle sales were on pace to be the highest since the Millennium, but prices were also high, and setting records.

According to Kelley Blue Book, February’s new vehicle sales totals should top last February’s by a healthy 9%, at 1.37 million units sold.

This would make last month the best February for sales since 2000.

American Honda saw the biggest boost in sales, but Ford wasn’t too far behind. Both companies saw double-digit gains from February 2015 to February 2016.

All of this good news comes at a price though: $33,781, on average.

That big number is what KBB found to be the average new vehicle transaction price in February. This is a new record as well.

KBB said that average transaction prices have increased by $739 since February 2015.

Generous factory incentives are helping to keep vehicles affordable – indeed, KBB said these incentive packages are now reaching pre-recession levels.

The good news for consumers is that competition is fierce among auto makers, as all want to post ever-increasing sales numbers. This should help to keep incentives high, and deals plentiful.

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