On the Dash:
- New-vehicle ATP rose 1.8% year over year in April, below the 3.6% long-term average.
- Ford and GM posted strong gains while several luxury brands saw transaction prices fall.
- EV prices edged higher in April but remained nearly 5% below year-ago levels.
New-vehicle prices rose again in April, just not by as much as usual. The average transaction price (ATP) reached $49,461, up 1.8% from a year ago and 0.7% from March. Long-term averages run closer to 3.6% annually. That’s according to the latest data from Kelley Blue Book.
Prices have climbed steadily for a decade, peaking near $50,000 in early 2023. They have held just below that number ever since.
Prices rise across most segments
Midsize SUVs, compact SUVs, and full-size pickups drove most of the monthly price increase. Those three segments, along with subcompact SUVs and compact cars, accounted for 64.2% of total industry sales. Year-over-year ATP gains in those segments ranged from 1% for compact cars to 3% for subcompact SUVs.
Subcompact cars posted the largest increase of any segment, up 9.6% year over year to $28,267. But that category represents a small share of overall sales.
Mid-size cars and high-performance cars were effectively unchanged, posting gains of less than half a percent from a year ago.
Not every segment saw ATP increases. Sports cars fell 7.0% year over year to $45,748. Luxury compact SUVs dropped 2.0% to $52,058.
Breakdown by brand
Results varied widely by manufacturer and brand. Ford Motor Company posted one of the strongest manufacturer gains, with ATP rising 5.9% year over year to $58,188. The Ford brand led the way, up 6.2% to $57,447. Lincoln rose 3.1% to $71,859.
General Motors posted a 2.6% year-over-year gain to $54,381. Cadillac drove most of that increase, rising 11.4% to $86,489. Chevrolet gained 2.2% to $49,507. Buick climbed 4.5% to $37,199. GMC was the only GM brand to decline, slipping 1.6% to $65,325.
Major import manufacturers saw gains as well. Hyundai Motor Group climbed 3.3% to $38,932. The Renault-Nissan-Mitsubishi Alliance gained 4.0% to $37,370.
Even as overall ATP rose, several luxury brands saw declines. Land Rover posted the largest drop, falling 9.6% to $104,804. Mercedes-Benz fell 3.7% to $72,650. Acura slipped 2.7% to $49,977. Genesis declined 1.5% to $64,452.
EVs reverse price retreat
EV transaction prices reversed a recent decline. The average rose 1.4% from March to $55,211, though prices remained 4.9% below year-ago levels. The price gap between EVs and non-EVs widened slightly to about $6,200.
Tesla remains the dominant EV brand by sales volume in the U.S. Its ATP fell 4.0% year over year to $53,279, reflecting reduced sales of the Model S and Model X. The Model Y averaged $50,859, down 8.3% from a year ago. The Model Y’s price edged up 1.4% from March.
Rising gas prices may be behind the uptick in EV pricing. CBT News reported last month that Edmunds.com saw a 20% rise in searches for electric vehicles during the first week of March, coinciding with a spike in fuel prices.
What to watch
Dealers will want to monitor pricing closely as the summer sales season begins. If price growth continues to slow, buyers may find more relief at the negotiating table. But with inflation and rising gas prices still weighing on household budgets, affordability remains a concern.
Dealers should pay close attention to incentive levels by segment and allocate inventory toward brands and categories showing the strongest demand.
