According to Kelley Blue Book, average new-vehicle prices have hit an all-time high in the United States. In June, 2021 the ATP (average transaction price) for new vehicles was $42,258 or 99.9% of the average MSRP of $42,290. This marked an increase of $2,527 (6.4%) compared to the same month the previous year. In May, 2021 analysts saw ATP increase by $928, or 2.2% compared to the year before.
“Despite unprecedented low incentives and inventory levels in June, last month showcased more historically high average transaction prices, reaching an all-new record,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. This increase continues the rise noted earlier in the year. In January 2021, ATP was 95.9% of MSRP and a year ago it was 95.4%.
“New-vehicle affordability continues to decline as the income required to purchase the average new vehicle continues to climb,” Reynolds said, adding that “In June, for the first time in a decade, vehicle buyers were essentially paying sticker price – the manufacturer’s suggested retail price – for new vehicles.”
With the exception of Tesla (whose numbers were heavily skewed because the manufacturer did not report price numbers for the Model S and Model X), all vehicle manufacturers showed year-over-year growth in ATP in June.
Mitsubishi’s year-over-year growth in ATP was highest—an 18.30% change between June 2020 and June 2021. Stellantis saw the second highest increase (15.8%). Two of the OEM’s most popular models — the Jeep Wrangler and RAM pickup saw double-digit increases compared to the same period last year. In fact, the RAM pickup outsold most of its counterparts in June with a 13.8% price increase compared to the previous year and despite inventory concerns.
The year-over-year growth in ATP of non-luxury models (up 7%) continued to be significantly higher than luxury models (an increase of 2.9%). Analysts at Kelley Blue Book attribute the non-luxury segment’s high growth to the availability and price increase of mid-size and full-size cars. In particular, they note that the Honda Accord saw a substantial increase in ATP, and yet sales of the vehicle still increased 35% compared to June 2020.
Source: Kelley Blue Book
Source: Kelley Blue Book
