“New Car Prices Rise Again After Period of Inactivity”

New Car Prices See Increase in April, Average Transaction Price Reaches ,510

In a significant shift, new car prices are on the rise once again, with the average transaction price jumping 2.2% to ,510 in April. This marks a reversal of months of declines, although the number is still down 0.5% compared to the previous year.

According to Kelley Blue Book, new vehicle incentives also saw a decrease, with the average incentive dropping to 6.3% of the average transaction price in April from 6.6% in March. Despite this, incentives have been on the rise since 2022, when tight inventories and high demand for new vehicles created challenges.

Cox Automotive executive analyst Erin Keating noted that the increase in pricing in April could be attributed to automakers pulling back on incentives compared to the previous quarter. She highlighted ongoing affordability challenges and predicted that incentives would continue to grow through the rest of 2024 to maintain sales momentum.

Mainstream models now cost an average of ,989, up from ,078 in March, with pickups contributing to this increase as the average transaction price for a full-size truck reached ,631 in April.

Luxury vehicle sales remained strong despite a 2.4% increase in transaction prices, leading to an average transaction price of ,076.

Tesla and Volvo emerged as some of the top performers, with Tesla’s average transaction prices rising by 5.7%, mainly due to a price increase on the Model Y. The average transaction price for electric vehicles also saw a slight increase to ,252, although it was down 8.5% year-over-year due to market factors.

Overall, the automotive market is seeing a shift in pricing trends, with new car prices showing signs of recovery after months of decline. Buyers can expect to see incentives and pricing strategies evolve in the coming months to address affordability challenges and maintain sales momentum.