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New vehicle prices Top records five months in a row – Remarketing

New vehicle prices Top records five months in a row - Remarketing

Hyundai, Land Rover, Honda and Kia continue to show the most price power in the market, with trades between 5 and 9% on sticker last month. Ram, Volvo, Lincoln, Buick and the smaller Italian brands Alfa Romeo and Fiat showed the least price strength, selling 1% or more below MSRP in August.

Graphics: Kelley Blue Blook / Cox Automotive


The average price paid for a new vehicle in the U.S. in August surpassed the July record, keeping the average transaction price (ATP) firmly above $48,000, according to new data released Sept. company of Cox Automotive.

The Kelley Blue Book ATP for new vehicles rose to $48,301 in August 2022, surpassing the previous record of $48,080 in the previous month. August 2022 prices increased 0.5% ($222) month-over-month from July, and 10.8% ($4,712) year-over-year from August 2021.

The supply of new vehicles for inventory days remained stable during the summer in the mid to high 1930s and shows signs of increasing. In August, the supply of days was 43% higher than in the same period of 2021, when inventory shortages started to affect the market for the first time. Still, with around 1.2 million units in stock in the US, new vehicle supply remains well below the 2020 and 2019 levels. Despite tight inventory and high prices, new vehicle sales remain low, averaging just 1.1 million units per month in 2022. By comparison, sales in the first eight months of 2019 averaged 1.4 million per month.

Hyundai, Land Rover, Honda and Kia continue to show the most price power in the market, with trades between 5 and 9% on sticker last month. Ram, Volvo, Lincoln, Buick and the smaller Italian brands Alfa Romeo and Fiat showed the least price strength, selling 1% or more below MSRP in August. Understandably, the brands with the lowest price power also have the highest number of days worth of vehicles.

“Prices are still high and increasing incrementally each month,” said Rebecca Rydzewski, economic and industrial insights research manager for Cox Automotive, in a press release. “New vehicle inventory levels have risen through August and are now reaching their highest level since June 2021. However, the supply of popular segments – such as subcompacts, hybrids and EVs – still remains very low. Automakers focus on building and selling high-margin vehicles. Essentially, the product mix is ​​the most important factor in keeping prices high.”

The average price paid for a new non-luxury vehicle last month was $44,559, up $132 per month and a record non-luxury vehicle, surpassing the previous month’s high. Car buyers in the non-luxury segment paid an average of $1,102 above the sticker price, up from the previous month. Non-luxury buyers paid nearly 2% above MSRP in August, compared to 1% above MSRP a year ago. A bright spot for buyers: Truck buyers paid $142 under the sticker in August.

In August 2022, the average luxury buyer paid $65,935 for a new vehicle, up $878 from the previous month when luxury ATPs hit a record $65,057. Luxury buyers continue to pay more than MSRP for new vehicles, although prices are moving closer to sticker prices. The share of luxury vehicles also remains at an all-time high, although the share fell to 17.5% of total sales in August, from 17.7% in July. The high share of luxury sales is helping to push the industry’s total ATP up.

The average price paid for a new electric car (EV) rose 1.7% in August from July and increased by 15.6% from a year ago. The median price for a new electric vehicle — more than $66,000, according to Kelley Blue Book estimates — remains well above the industry average, more in line with luxury prices than regular prices.

Incentives fell slightly in August compared to July and remained at a historic low at just 2.3% of the average transaction price. A year ago, incentives averaged 5.5% of ATP. Large and luxury cars had the highest incentives in August, while high-performance cars, vans and electric vehicles received the lowest incentives. Brands with higher inventory levels offered higher incentives in August.

For example, Stellantis’ brands generally had above-average inventory in August and above-average incentives as well. While still low historically, Stellantis’ incentives averaged 4.4% of ATP in August, up from 4.1% in July.

Originally posted on Vehicle remarketing

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