Average new vehicle prices in the United States continue to surpass the $40,000 mark and were up more than 5% in January, according to Kelley Blue Book.
KBB analysts reported that the estimated average transaction price for a light vehicle in the U.S. was $40,857 during that time frame, with new vehicle prices having increased $2,110 (up 5.45%) year-over-year, while falling $295 (down 0.72%) from last month.
“January 2021 prices are coming off a historical fourth quarter, with average transaction prices reaching more than $40,000 for the first time at the end of 2020,” said Kayla Reynolds, Industry Intelligence Analyst at Cox Automotive. “As we have seen the last few years, we expect transaction prices to continue to grow.”
Reynolds said that, while many manufacturers experienced YOY growth, Fiat Chrysler Automobiles (FCA)/Stellantis had the largest increase at nearly 10%. In fact, Fiat was the largest contributor to the success of FCA/Stellantis, rising 25% YOY. Discontinuing its lowest priced model, the Fiat 500, helped increase average transaction prices from this time last year.
In contrast, Mitsubishi had the largest YOY decline, down 8%. The brand’s two highest priced models, Eclipse Cross and Outlander, experienced significant YOY declines in sales.
On the segment level, minivans reached the largest YOY growth with a 12% increase, while the luxury car category managed an 11% YOY average transaction price increase. Among minivans, the Toyota Sienna and Chrysler Pacifica were the main drivers of price increases.
Luxury cars benefited too, from several discontinued lower-priced models such as the BMW 6 Series, INFINITI Q70, and Cadillac CT6 that helped boost average prices.
