Average New-Vehicle Prices Hit All-Time High, According to Kelley Blue Book
The estimated average transaction price (ATP) for a light vehicle in the United States was $42,258 in June 2021, according to the analysts at Kelley Blue Book.
New-vehicle prices increased $2,527 (up 6.4%) from June 2020, while increasing $928 (up 2.2%) from May 2021.
“Despite unprecedented low incentives and inventory levels in June, last month showcased more historically high average transaction prices, reaching an all-new record,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “New-vehicle affordability continues to decline as the income required to purchase the average new vehicle continues to climb. In June, for the first time in a decade, vehicle buyers were essentially paying sticker price – the manufacturer’s suggested retail price – for new vehicles.”
According to Kelley Blue Book, the record-high ATP of $42,258 in June was 99.9% of the average MSRP of $42,290. For comparison, in January of this year, ATP was 95.9% of MSRP; one year ago, it was 95.4%.
Every vehicle manufacturer except Tesla—see note above—showed year-over-year growth in average transaction prices in June, with Stellantis seeing the second-largest increase (up 15.8%), just behind Mitsubishi, which climbed 18.3%.
The majority of the models in Stellantis’ lineup saw increases from this time last year. The Jeep Wrangler and RAM Pickup, two of the automaker’s best-selling models, saw double-digit increases compared to June 2020.
Despite inventory concerns, the RAM Pickup outsold many of its counterparts last month with a 13.8% price increase from last year.
At the segment level, non-luxury models continue to make significant gains compared to luxury models, up 7% versus 2.9% respectively.
The availability and price increase of the mid-size and full-size car categories attributed to the non-luxury segment’s growth in average transaction prices. The Honda Accord saw its average transaction price increase substantially above the industry and segment average at 14%.
Still, even with the substantial price increase, Honda Accord sales increased 35% compared to June 2020.
Find out more at www.kbb.com
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