U.S. new-vehicle prices climbed to a record high for January, even as incentives fell and automakers pulled back to protect margins, according to Kelley Blue Book.
The average transaction price (ATP) reached $49,191 in January, up 1.9 per cent year over year, though down 2.2 per cent from December’s revised record of $50,318. Kelley Blue Book said the monthly dip was seasonally typical following a luxury-heavy December.
“January’s pricing story is really a reminder of how much mix still matters in this market,” said Erin Keating, executive analyst at Cox Automotive, in a statement. “We hit a new January high even as prices naturally pulled back from December’s luxury-heavy finish.”
The average MSRP rose to $51,288, up 2.1 per cent from a year earlier and marking the 10th straight month above $50,000. Incentives fell to 6.5 per cent of ATP, or about $3,200, down from 7.5 per cent in December and 7.1 per cent a year ago.
Compact SUVs remained the top-selling segment, with ATPs of $36,414, down 0.4 per cent year over year. Meanwhile, full-size pickup MSRPs stayed above $70,000 for a fifth straight month, with more than 150,000 sold.
Entry-level options continue to shrink. With the Mitsubishi Mirage nearly gone and Nissan Versa production reportedly ended, no new vehicle now carries an average MSRP below $20,000.
KBB’s data also showed that electric vehicle pricing softened. EV ATPs fell to $55,715, down 0.6 per cent year over year and 3.1 per cent month over month. Incentives dropped sharply to 12.4 per cent of ATP from 18.3 per cent in December. EV sales totalled just over 66,000 units, down nearly 30 per cent year over year.
