U.S. new vehicle prices jumped $1,141 (3.1%) in June, year-over-year, while increasing $160 (0.4%) from last month, according to Kelley Blue Book.
They estimate that the average transaction price for a light vehicle in the U.S. was $38,530 during that period.
“Though Q2 sales are expected to be down 35% due to COVID-19 and the ensuing economic recession, transaction prices over this time strengthened more than normal,” said Tim Fleming, analyst for Kelley Blue Book. “The industry average climbed 3% — helped by increases in non-luxury cars — and light truck sales mix at around 75% of the total market.”
Fleming said today’s new-car buyers are likely to be more financially secure than their predecessors, despite economic uncertainty. He also said they are buying a disproportionate number of trucks and SUVs and showing less interest in luxury brands, which saw prices dip 1.5%.
By now it is clear that COVID-19 has impacted supply and caused inventory challenges, which the industry is still facing in many parts of the U.S. and in high-demand segments. OEM factory shutdowns due to the pandemic and supply chain ramp-ups since the issue was ignited are largely to blame. Add the recent resurgence in used-car values and prices are likely to remain up during the summer period.
On vehicles, Nissan North America experienced an increase in average transactions in June of 8%, with its redesigned Versa and Sentra cars up the most.
“Cars continued their comeback, showing improvements of all body styles and averaging 3% gains,” said Kelley Blue Book. “Compact cars led the way with nearly 4% increases, thanks in part to the new Sentra.”
Mid-size SUVs were up 6% — the biggest increase of any segment, thanks in part to the redesigned Ford Explorer, Jeep Wrangler, and the all-new Hyundai Palisade.
And a combination of SUVs and trucks is pushing the average new-vehicle price up, with June’s light truck mix anticipated to be approximately 76% — up from 71% a year earlier.
