New-Car Prices Dip

By Staff Writer August 04, 2020 369

The valuation analysts at Kelley Blue Book reported the estimated average transaction price for a light vehicle in the United States was $38,378 in July 2020. New-vehicle prices increased $749 (up 2 percent) from July 2019, while decreasing $473 (down 1.2 percent) from last month.   

“While up from last year, new-car transaction prices are finally starting to dip from last month,” said Steve Lind, vice president of operations for Kelley Blue Book. “This could be a result of supply shortages of highly contented, more desirable vehicles, which may cause some consumers to select second-choice trims. Shoppers’ aversion to luxury vehicles continues with prices down 1 percent from last month.”

Non-luxury transaction prices are up nearly 4 percent year-over-year, likely the result of high SUV and truck sales. While many automakers have benefited, momentum is slowing for several key manufacturers. Nissan North America and Hyundai Kia, which have been particularly strong in recent months and were up 8.9 percent and 7.6 percent year-over-year respectively, have dropped 1.5 percent from last month. Ford Motor Company also is down 1.3 percent from June 2020.

Supply and inventory will remain a challenge in high demand segments due to factory shutdowns in the spring and potential shutdowns before year-end. Used-car prices are still at record-breaking levels, and in some segments, there are models coming close to new-car prices, including sports cars. Performance trims of the Challenger and Mustang are reporting strong values, while the all-new mid-engine 2020 Corvette is currently bringing $15,000 over MSRP in the used market.

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Last modified on Tuesday, 04 August 2020 13:54