Pickup Trucks Help Drive Average Transaction Price Strength, According to Kelley Blue Book
The estimated average transaction price for light vehicles in the United States was $35,635 in May 2018, according to Kelley Blue Book. America’s love of pickup trucks and SUVs is helping to keep that figure high, and growing.
New-vehicle prices increased by $1,187 (up 3.4 percent) from May 2017, while falling $145 (down 0.4 percent) from last month.
“Average transaction prices rose a healthy 3 percent this month and remain strong even as new-vehicle demand is expected to falter in 2018,” said Tim Fleming, analyst for Kelley Blue Book.
“It’s no surprise prices were helped by SUV demand, but pickup trucks played a big role in May’s increases as well. Prices in both full-size and mid-size truck segments were up 4 percent, and it is shaping up to be a pivotal time for pickups with the new RAM truck now on the market, a new Chevrolet Silverado coming later in the year, and the Ford Ranger returning to the U.S. early next year,” Fleming said.
Ford Motor Company is among the automakers benefitting from strong utility and pickup truck lineups. Ford Motor Company average transaction prices grew nearly 5 percent in May 2018, as both brands put up solid numbers.
Lincoln’s average transaction prices are up 14 percent, due to the new Navigator, which jumped 32 percent from this time last year.
For the Ford brand, the new Expedition increased 15 percent, while the 460-horsepower Mustang GT helped the model’s average improve by 12 percent. A strong mix of F-Series sales also helped Ford, as the brand climbed 4 percent.
General Motors also was up 4 percent year-over-year, with the Chevrolet brand rising the most at 5 percent.
Chevrolet’s increase came on a strong mix of Silverado sales, as well as the redesigned Traverse, which posted a 12 percent gain. In addition, the new Buick Enclave was up 7 percent, although an expectedly high sales mix of Encore will result in a slight decline in average transaction prices for Buick.
Find out more at www.kbb.com.
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