The analysts at Kelley Blue Book today reported the estimated average transaction price for light…
The analysts at Kelley Blue Book today reported the estimated average transaction price for light vehicles in the United States was $37,577 in December 2018.
New-vehicle prices increased (up 1.3 percent) from December 2017, while decreasing $93 (down 0.2 percent) from last month.
“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 percent 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.”
Excluding Tesla from the average, the rest of the industry rose 2.5 percent, a result more in line with the past few years.
The sales mix of cars dropping to 31 percent (from 36 percent in 2017) also played a role in rising prices, and as more automakers like Ford discontinue their car nameplates in favor of SUVs and trucks, the average new-vehicle price will continue to grow.