New vehicle prices in the U.S. increased nearly 3 per cent or $985 in July 2018, year-over-year, while dropping 0.4 per cent from the previous month, according to the analysts at Kelley Blue Book.
They also note that the estimated average transaction price for light vehicles during the month of July was $35,359.
“Average transaction prices rose 3 per cent year-over-year, thanks to market demand quickly backing away from cars,” said Tim Fleming, an analyst at Kelley Blue Book. “Cars are expected to make up only 31 per cent of July sales, down from 36 per cent just one year ago, which is pushing transaction prices up as consumers opt for pricier SUVs and trucks. Prices also are likely to strengthen as the average days in inventory has begun to recede for the first time this decade, which is a sign automakers are managing production well in the post-peak demand era.”
Volkswagen Group experienced a 5 per cent boost in average transaction prices during the month of July, thanks in large part to the strength of its Volkswagen brand. The division was up 5 per cent from its SUVs (Atlas and Tiguan), which helped utility vehicles sales jump from 15 per cent to nearly 40 per cent, according to KBB’s news release. The redesigned Jetta also played a part in the Volkswagen’s overall sales growth.
Ford Motor Company’s also did well in July, with average transaction prices reaching an impressive 4 per cent for the month. Its Lincoln brand experienced a 10 per cent increase due primarily to the new Navigator (up 33 per cent). Ford’s average transaction prices were up 4 per cent, thanks in part to a refreshed F-150 (up 5 per cent) and the new expedition (up 14 per cent).
