Data Point
Average New-Vehicle Prices Drop 2.3% in Q1 Contributing to Improved Vehicle Affordability
Thursday April 15, 2021
Article Highlights
- The estimated average transaction price for a light vehicle in the United States was $40,472 in March 2021, according to the valuation analysts at Kelley Blue Book.
- New-vehicle prices fell $608, down 1.5%, from February 2021.
- The electric vehicle category is a segment to watch, as affordable new models continue to roll in and drive down year-over-year pricing.
The estimated average transaction price for a light vehicle in the United States was $40,472 in March 2021, according to the valuation analysts at Kelley Blue Book. New-vehicle prices increased $1,660 (up 4.3%) from March 2020, while falling $608 (down 1.5%) from February 2021.
For the fifth straight month, affordability improved in March, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index, published earlier today. With both the price and the average financing rate declining, the monthly payment was lower. The number of median weeks of income needed to purchase a new vehicle declined to 31.8 weeks from an upwardly revised 32 weeks in February. The index shows that new vehicles have become relatively more affordable since October 2020.
“March average transaction prices continued to perform above the threshold of $40,000, even with near-record retail volume last month,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “The electric vehicle category is a segment to watch, as affordable new models continue to roll in and drive down year-over-year pricing.”
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