New-car prices growing: KBB

New-car transaction prices have grown nearly three per cent year-over-year in May 2017, according to analysts at Kelley Blue Book. “Transaction prices continue to climb at a steady rate, driven by the weakening sales mix of cars which is estimated at 38 per cent in May,” said Tim Fleming, analyst at KBB in a news release. The most popular segment was compact SUVs which has seen a two per cent increase year-over-year and continues to be in high demand.

According to KBB, new car prices in the U.S. have increased by $847 from May 2016, a 2.6 per cent rise, but have declined 0.8 per cent, or $266 from May, 2017.

Boosted by sales of its F-Series which rose three per cent, Ford Motor Company was up five per cent overall in May 2017. The company’s Fusion model had one of the strongest gains in the struggling mid-size car segment at three per cent.

Another notable OEM that has been experiencing growth is Volkswagen. The brand’s average transaction prices grew almost four per cent. The company’s overall five per cent climb is partly due to the resumed sale of model-year 2015 diesel vehicles, said the release.

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Canadian auto dealer