icon-branding Events Icon Created with Sketch. Inventory Icon Created with Sketch. icon-mail-hovericon-mail Marketing Icon Created with Sketch. icon-operationsicon-phone-hovericon-phone Product Training Icon Created with Sketch. Sales Icon Created with Sketch. Service Icon Created with Sketch. icon-social-fb-hovericon-social-fbicon-social-google-hovericon-social-googleicon-social-linkedin-hovericon-social-linkedinicon-social-rss-hovericon-social-rss icon-social-twitter Created with Sketch. icon-social-twitter-hovericon-social-twittericon-social-youtube-hovericon-social-youtube

Let's Put the Power of us to Work for You! Join us at NADA2023.

See what's new x

Data Point

Average New-Vehicle Transaction Prices Top $45,000 for First Time, According to Kelley Blue Book

Share

Facebook Share Twitter Tweet Linkedin Share Email Email

Article Highlights

  1. At $45,031, the average new-vehicle transaction price hit a record high in September 2021 for the sixth consecutive month, according to Kelley Blue Book.
  2. Vehicle mix shifted in September toward pickups and SUVs, and luxury share grew. The luxury segment hit a record price of $60,845.
  3. Average price paid for a new vehicle jumped 12.1% year over year in September, as tight inventory continued to hamper the sales pace.

New-vehicle prices hit another all-time high in September 2021, marking the sixth straight record-setting month and surpassing $45,000 for the first time, according to a new report from Kelley Blue Book. At $45,031, the average transaction price (ATP) for a new vehicle was up 12.1% (or $4,872) from one year ago in September 2020 and up 3.7% (or $1,613) from August 2021.

NEW-VEHICLE AVERAGE TRANSACTION PRICE
Click image to enlarge.

The all-time-high prices accompanied the fifth straight month of a slowing sales pace. Total sales last month numbered just 1,012,797, a 7.3% month-over-month decrease and one of the lowest volumes in the past decade. On top of supply dynamics, the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market.

“The record-high prices in September are mostly a result of the mix of vehicles sold,” said Kayla Reynolds, analyst for Cox Automotive. “Midsize SUV sales jumped in September compared to August and full-size pickup share moved up as well. Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated.”

Incentive spending fell in September to another record low, dropping to 5.2% of ATP last month, a decrease from 5.6% in August 2021 and well below the 10.0% of ATP recorded in September 2020. Porsche, Land Rover, Genesis, Subaru and Toyota had among the lowest incentive spend last month, all 3% of ATP or lower. On the other hand, Alfa Romeo, Buick, Fiat and Infiniti each had incentive levels above 10% of ATP.

INDUSTRY AVERAGE TRANSACTION PRICE VERSUS
INDUSTRY AVERAGE INCENTIVE SPEND AS % OF ATP
Click image to enlarge.

ATPs in September continued to be driven higher by strong luxury vehicle sales. Luxury sales accounted for 16.6% of total market sales, up from 15.1% in September 2020. Luxury share in September was among the highest in the past decade, and luxury buyers paid an average of $60,845 for a new vehicle last month. Further, many luxury brands, notably Acura, Cadillac, Genesis and Mercedes-Benz, achieved year-over-year ATP gains in excess of 20%. Cadillac, for example, saw ATPs jump up more than 32% last month, reaching $81,939. Consumers continue to pay near $100,000 for a new Cadillac Escalade. More than 3,500 were sold in September 2021, a jump of more than 50% from August 2021.

PRICE CHANGE PERCENTAGE BY AUTOMAKER
Click image to enlarge.

Sign up here to receive bi-weekly updates on news and trends dominating the automotive industry.