It has been an interesting year for vehicle sales in North America. U.S. new car prices were up slightly in December which helped to close a strong year of growth, according to the analysts at Kelley Blue Book.
In 2018, new vehicle prices rose 1.3% in December, year-over-year, but also fell 0.2% ($93) from November 2017. The estimated average transaction price for light vehicles during this period was $37,577.
“December closed out a very strong year for new-car prices, as they rose to more than $36,000 on average in 2018, a 3% increase,” said Tim Fleming, analyst for Kelley Blue Book. “Despite higher interest rates and incentives remaining flat year-over-year, this was the strongest growth in transaction prices since 2013. Average transaction prices were boosted in 2018 by tax reform and low unemployment, as well as the rapid ramp-up of Tesla and its Model 3.”
Tesla aside, the rest of the automotive industry experienced a 2.5% growth. The fact that cars (such as sedans) declined 31% (from 36% in 2017) is also what caused prices to increase.
The decline in consumer demand for these types of vehicles is pushing automakers like Ford to discontinue certain nameplates in favour of SUVs and trucks. As more OEMs make similar adjustments, the average new vehicle price will continue to increase.
The demand for SUVs and trucks in December pushed Fiat Chrysler and Subaru up YOY. It also helped Nissan North America jump 2% overall thanks in part to a 5% boost from Infiniti.
For more details, see the tables below:
