New Vehicle Prices Rise Again Featured

By Staff Writer February 19, 2020

The valuation analysts at Kelley Blue Book reported the estimated average transaction price for a light vehicle in the United States was $37,851 in January. New-vehicle prices increased $1,296 (up 3.5 percent) from January 2019, while falling $806 (down 2.1 percent) from last month.   

“Much of the year-over-year gains were mix-related, as cars went from 30 percent of the market in January 2019 to just 25 percent in January 2020,” said Tim Fleming, analyst for Kelley Blue Book. “Both trucks and SUVs picked up share, as SUVs climbed to 52 percent (up from 48 percent) and trucks rose to 19 percent of the market (up from 17 percent). If the sales mix remained steady from a year ago, the year-over-year increase in average transaction prices would have been only 1.5 percent.”

The average prices of Hyundai and Kia climbed more than 12 percent. The sales mix played a role in helping these brands, as their SUV share grew by about 10 percentage points. Launched last year, Hyundai Palisade and Kia Telluride were transacting at more than $40,000 last month.

Ford Motor Company was another manufacturer with big transaction price increases in January, with both Ford and Lincoln climbing about 6 percent. The redesigned Explorer saw the largest transaction price jump in January for Ford at 12 percent, while the all-new Escape’s average price rose 6 percent. Making up nearly a quarter of Lincoln brand sales last month, the new Aviator transacted at $67,730.

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Last modified on Wednesday, 26 February 2020 14:11

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