New Car Transaction Prices Grow 3 Percent Year-Over-Year
June 1, 2017—Kelley Blue Book reported the estimated average transaction price for light vehicles in the United States was $33,261 in May 2017. New car prices have increased by $847 (up 2.6 percent) from May 2016, while falling $266 (down 0.8 percent) from last month.
"Transaction prices continue to climb at a steady rate, driven by the weakening sales mix of cars which is estimated at 38 percent in May, down from 41 percent one year ago," said Tim Fleming, analyst for Kelley Blue Book. "Compact SUVs, the most popular segment in terms of sales, saw an increase of 2 percent year-over-year and clearly remain in very high demand. There are signs, however, of discounts in SUV segments that are growing quickly, including subcompact and luxury SUVs, which are likely helping to fuel those segments' double-digit sales growth this year."
Ford Motor Company was up 5 percent in May 2017, boosted by the F-Series which rose 3 percent. The refreshed Fusion also saw one of the strongest gains in the weakening mid-size car segment at 3 percent. Meanwhile, the Lincoln brand was flat, although the MKC crossover fell 4 percent.
Additionally, Volkswagen Group's average transaction prices grew nearly 4 percent, as the Volkswagen brand climbed 5 percent, in part due to the resumed sale of model-year 2015 diesel vehicles. The Audi brand was flat, though the redesigned A4 allroad soared 9 percent.