U.S. new-car prices stay relatively flat

The average new-car price for light vehicles in the U.S. is now $34,861 — up from 0.4 per cent year-over-year from September 2016, according to Kelley Blue Book.

The industry average has increased, but only moderately and as such remains relatively flat.

“Transaction prices were up very slightly in September, reflecting the industry’s trend of slowing demand for new vehicles,” said Tim Fleming, analyst for Kelley Blue Book. “Despite pullbacks in vehicle production this year, incentives are still rising and averaging nearly 11 per cent of transaction prices.

With average new-car prices hovering around $35,000, Fleming also expects affordability to remain a challenge, “especially as more consumers stretch their loan terms out to 84 months to keep payments down.”

General Motors was the only major auto manufacturer to see a decline (of approx. 3 per cent) in average new-car transaction prices YOY from September 2016. (Buick’s average was up 4 per cent and Chevrolet was down 3 per cent).

Honda’s average new-car prices were better at 0.1 per cent, but overall flat. The Honda brand was up 1 per cent thanks in large part to the redesigned Odyssey minivan and CR-V, and Acura was down 3 per cent.

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