New-car prices set record high: Up nearly 2 percent in December 2017

kelley blue bookThe analysts at Kelley Blue Book reported the estimated average transaction price (ATP) for light vehicles in the United States was $36,113 in December 2017New-car prices have increased by $583 (up 1.6 percent) from December 2016, while climbing 66 (up 0.2 percent) from last month.

“Average transaction prices closed the year on a strong note, rising nearly 2 percent in December 2017to set a record high,” said Tim Fleming, analyst for Kelley Blue Book. “Incentive spending was a concern in 2017, averaging 10.4 percent of MSRP, but encouragingly, this figure held relatively flat over the final quarter of the year. In 2018, interest rate hikes could be another concern, as they threaten to increase monthly payments for consumers; however, Kelley Blue Book anticipates they will help contribute to another down year of new-vehicle sales more than impact prices, which have steadily risen along with the economy since the recession.”

Transaction prices for all of 2017 also finished 2 percent higher than last year, slightly slower growth than 2015 and 2016, which was at 2.5 percent.

Manufacturer

December

 2017

Transaction
Price (Avg.)*

November

2017

Transaction
Price (Avg.)*

December

2016
Transaction
Price (Avg.)*

Percent
Change
November

2017 to
December
2017*

Percent
Change
December

2016 to
December

2017*

American Honda (Acura, Honda)

$28,658

$28,351

$27,951

1.1%

2.5%

Fiat Chrysler (Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, RAM)

$37,446

$37,411

$36,977

0.1%

1.3%

Ford Motor Company (Ford, Lincoln)

$40,421

$40,023

$39,447

1.0%

2.5%

General Motors (Buick, Cadillac, Chevrolet, GMC)

$40,016

$40,204

$40,185

-0.5%

-0.4%

HyundaiKia

$25,546

$25,356

$24,970

0.7%

2.3%

Nissan North America (Nissan, Infiniti)

$29,828

$29,921

$29,932

-0.3%

-0.3%

Subaru

$28,688

$28,824

$28,646

-0.5%

0.1%

Toyota Motor Company (Lexus, Toyota)

$33,937

$33,351

$33,032

1.8%

2.7%

Volkswagen Group (Audi, Volkswagen, Porsche)

$40,698

$42,943

$37,658

-5.2%

8.1%

Industry

$36,113

$36,047

$35,530

0.2%

1.6%

*Kelley Blue Book average transaction prices do not include applied consumer incentives

American Honda’s transaction prices rose nearly 3 percent in December 2017 with the Honda brand up 4 percent and Acura flat. The CR-V, Honda’s top seller, continued its strong run with prices up 6 percent. In addition, the redesigned Honda Odyssey showed the most improvement, rising 14 percent to top the minivan segment.

Volkswagen Group saw the biggest jump among the major manufacturers with average prices up 8 percent. The Volkswagen brand climbed 9 percent, thanks to its new SUVs, the Atlas and Tiguan, which also are gaining momentum. Porsche climbed 5 percent on the strength of its new Panamera. Audi was up 4 percent with the redesigned A5 and Q5 each rising 10 percent.

Segment

December

 2017

Transaction
Price
(Avg.)*

November

2017

Transaction
Price
(Avg.)*

December

2016
Transaction
Price
(Avg.)*

Percent
Change
November

2017 to
December
2017*

Percent
Change
December

2016 to
December

2017*

Compact Car

$20,396

$20,302

$20,506

0.5%

-0.5%

Compact SUV/Crossover

$28,470

$28,565

$27,785

-0.3%

2.5%

Electric Vehicle

$37,792

$38,485

$37,890

-1.8%

-0.3%

Entry-level Luxury Car

$42,502

$42,375

$41,475

0.3%

2.5%

Full-size Car

$34,113

$34,568

$34,334

-1.3%

-0.6%

Full-size Pickup Truck

$47,601

$47,333

$47,191

0.6%

0.9%

Full-Size SUV/Crossover

$60,830

$60,335

$61,438

0.8%

-1.0%

High Performance Car

$93,713

$93,700

$94,111

0.0%

-0.4%

High-end Luxury Car

$97,128

$98,620

$93,821

-1.5%

3.5%

Hybrid/Alternative Energy Car

$25,696

$25,847

$25,546

-0.6%

0.6%

Luxury Car

$57,827

$58,956

$56,259

-1.9%

2.8%

Luxury Compact SUV/Crossover

$44,239

$44,496

$43,151

-0.6%

2.5%

Luxury Full-size SUV/Crossover

$83,277

$82,213

$83,267

1.3%

0.0%

Luxury Mid-size SUV/Crossover

$55,588

$55,625

$54,735

-0.1%

1.6%

Mid-size Car

$25,641

$25,525

$25,176

0.5%

1.9%

Mid-size Pickup Truck

$32,562

$32,400

$32,709

0.5%

-0.4%

Mid-size SUV/Crossover

$38,139

$38,076

$37,563

0.2%

1.5%

Minivan

$34,807

$34,863

$34,138

-0.2%

2.0%

Sports Car

$31,279

$31,205

$30,340

0.2%

3.1%

Subcompact Car

$16,265

$16,292

$16,716

-0.2%

-2.7%

Subcompact SUV/Crossover

$24,310

$24,400

$24,422

-0.4%

-0.5%

Van

$34,756

$34,655

$34,014

0.3%

2.2%

Grand Total

$36,113

$36,047

$35,530

0.2%

1.6%

*Kelley Blue Book average transaction prices do not include applied consumer incentives

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