Average new vehicle prices in the United States jumped 2.2% or $864 in April, year-over-year, and increased 0.23% or $92 from March 2021, according to the analysts at Kelley Blue Book.
The estimated average transaction price for a light vehicle in the U.S. in April was $40,768.
“Comparing the market to this time last year when COVID-19 brought the industry to a halt, highlights an increase in demand, sales, and vehicle prices all have contributed to continually rising transaction prices,” said Kayla Reynolds, Industry Intelligence Analyst at Cox Automotive.
She said many automakers reported YOY growth in average transaction prices, with the Volkswagen Group experiencing the largest YOY increase (up 9%), while Tesla had the greatest decrease from last year — down 10.3%.
The strength of the Volkswagen brand, which is up 6.8%, is due in large part to the OEM’s two best-selling models: the Atlas and Tiguan, both increasing approximately $3,000 on average since last year. Audi (up 6.7%) reported a 30% YOY increase in the average transaction price of its A7 model, which also increased in sales YOY.
To circle back — while average transaction prices for Volkswagen were up last month, they were down, YOY, for Tesla’s Model X and Model Y — the brand’s two most expensive vehicles.
“At the segment level, luxury full-size SUVs and crossovers had the largest year-over-year growth (up 14.4%),” said KBB. “Luxury full-size utility vehicles posted the second-highest average transaction prices at $98,017, just behind high-end luxury cars.”
All models in the luxury full-size utility segment experienced an increase — the Cadillac Escalade, Lincoln Navigator, Lexus LX, Land Rover Range Rover and more. KBB also said more than half of the vehicles in the segment managed large increases in sales, YOY.
On electric vehicles, prices declined 10.8% YOY, driven in large part by the decrease in Tesla transaction prices. The EV segment’s average price decline, down more than $6,000, was due to the introduction of more reasonably priced EV models arriving in the market — including Volkswagen’s ID.4 and the Mustang Mach-E.