Kelley Blue Book, the vehicle valuation and automotive research company, reported the average price Americans paid for a new vehicle in April stayed below the manufacturer’s suggested retail price (MSRP) for the second month in a row.
According to the data, the average transaction price (ATP) of a new vehicle in the US was relatively stable in April 2023 at $48,275a monthly decrease of 0.03% ($14) from an upwardly revised reading of $48,289 in March.
New vehicle transaction prices in April increased 3.7% ($1,744) from year-ago levels. Meanwhile, automakers’ incentive spending rose to the highest level in the past year. with 3.6% of the ATP in April, with an average of $1,714 dollars.
“New vehicle transaction prices are on a downward trend in 2023, which should be a breath of fresh air for buyers after recent years of low supply and rapidly rising pricessaid Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox. Automotive.
“Now that inventory levels are starting to rise and manufacturers are increasing incentives, the market will respond accordingly.. High interest rates on auto loans continue to be a major issue for many buyers, but inventory and pricing trends are positive in the market right now,” Rydzewski said.
After 20 months of ATP of new vehicles holding above the average MSRP, or sticker price, transaction prices are now trending lower.
In April 2023, the average price paid by consumers fell to $378 below the sticker price.. For comparison, a year ago the average ATP was $600 above MSRP. Sales volumes fell 1.5% month-on-month but rose 9.0% year-over-year in April, above most forecasts and fueled by higher inventory levels and a healthy dose of fleet deliveries.
For more details on new car prices in April, go here.
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