U.S. new vehicle prices increased $975 in February — up 2.6% year-over-year, while dipping 0.3% ($126) from January 2020, according to the valuation analysts at Kelley Blue Book.
They estimate that the average transaction price of a light vehicle in the U.S. in February 2020 was $37,876.
“Many of the major manufacturers increased prices by more than 4% by capitalizing on the shift toward SUVs. However, trucks, especially full-size trucks, are exhibiting weakness,” said Tim Fleming, analyst for Kelley Blue Book. “After prices climbed 3% in 2018 and 4% in 2019, truck prices are only flat through February 2020.”
With GM and Ram trucks hitting their second year of production, and with Ford about to sell-down its current F-150 for its upcoming redesigned model, Fleming says 2020 may be a good time to find a deal on a new truck.
In terms of OEM performance, Hyundai and Kia revealed the most significant YOY growth with a 10.2% increase. The Hyundai brand was up 12% and Kia 9%. Nearly every Hyundai model experienced gains, although the redesigned Sonata demonstrated the largest increase with 13%. For Kia, it was the Niro that managed the biggest jump, with its average price up 9%. The Kia Telluride was up 6%.
Nissan North America also experienced strong increases thanks to a 4.6% boost in February. The Nissan brand rose 5%, while its sibling Infiniti fell 1%. Updates to Nissan’s car lineup helped several of Hyundai’s models during this period. For example, its redesigned Versa jumped 16%, and the 215-mile LEAF Plus helped push the LEAF average up by 12%. “Also, the new Sentra is reaching dealerships and prices should climb in the months to come,” said Kelley Blue Book.
On the Infiniti side, the QX50 was down 9% and the QX60 dropped 4%. That being said, a lesser sales mix of sedans did help the brand’s average.
“At a segment level, we saw strength in SUVs in February, with compact SUVs up 2.4% and midsize SUVs up 3.4%,” said Fleming. “Two models drove the compact SUV segment up — the redesigned Ford Escape (up 7%) and the Toyota RAV4 (up 5%, thanks to its hybrid model).”
On midsize SUVs, the Ford Explorer was up a significant 10% and the Subaru Outback was up 6%. Overall, the average car price was flat YOY, while SUV prices increased more than 2%.
