Tag Archive | "Kelley Blue Book"

KBB: Avg. Transaction Price in June Rises 3%


IRVINE, Calif. — Thanks to market demand quickly backing away from cars, average transaction prices in July rose 2.9% from a year ago, or $985, to $35,359, Kelley Blue Book reported this week.

Cars are expected to make up only 31% of July sales, down from 36% in the year-ago period. This decline is pushing transaction prices up as consumers opt for pricier SUVs and trucks, the firm said.

“Prices also are likely to strengthen as the average days in inventory has begun to recede for the first time this decade,” said Kelley Blue analyst Tim Fleming, “which is a sign automakers are managing production well in the post-peak demand era.”

Volkswagen Group’s average transaction price grew 4.1% in July, primarily on the strength of the Volkswagen brand. Volkswagen prices increased 5% due to the company’s Atlas and Tiguan SUVs, which have brought the brand’s sales mix of utility vehicles from 15% to nearly 40%. The redesigned Jetta also performed well, with its average transaction price rising 6%. Audi transaction prices were flat for the month, though the Q5 did show strong improvement with a 4% increase in its average transaction price.

Another great performer was Ford Motor Co., whose average transaction prices grew 4% in July 2018. Lincoln’s average transaction prices increased 10%, thanks to the meteoric rise of the new Navigator (up 33%). Ford also reported a big month. Its average transaction price rose 4%, thanks to the 5% increase in the average transaction price of its refreshed F-150. The new Expedition also was strong, with its average transaction price rising 14% — pushing it near the top of the full-size SUV segment.

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KBB: Average New-Car Prices Rise 2% in February


IRVINE, Calif. — Kelley Blue Book put February’s estimated average transaction price for light vehicles at $35,444. That’s up $722 from a year ago but down $96 from January.

Even with new-vehicle demand expected to continue to slow in 2018, average transactions prices have so far been unaffected this year — though incentives have risen similarly to offset part of the extra cost, the firm noted.

“It was another month of solid transaction prices in February 2018, with 2% growth year-over-year,” said Kelley Blue Book analyst Tim Fleming. “The numbers indicate that new-car buyers are still willing to pay top dollar for the latest models with the most current features and technology. Even the new Honda Accord and Toyota Camry are commanding large premiums over their predecessors, despite competing in a rapidly shrinking segment.”

American Honda’s transaction prices climbed 2% in February 2018 — with the Honda brand alone recording a 3% increase. The new Accord posted a 6% increase, while the Odyssey continues to top the minivan segment with a 13% year-over-year increase in its average transaction price.

Toyota Motor Co. posted a 3% increase in its average transaction price behind the strength of its redesigned Camry, which recorded a 9% increase in transaction prices. The Lexus brand posted a 1% increase in its average transaction price, although that should climb in the coming months with its redesigned LS sedan now reaching dealerships.

Another notable manufacturer includes Volkswagen Group, which posted a 7% increase in its average transaction price. The Volkswagen brand alone posted an 8% increase, buoyed by the new Atlas SUV. Porsche transaction prices climbed 8% thanks to the redesigned Panamera, which was up 19%. Audi transaction prices rose 4%, with the redesigned A5 and Q5 showing the most improvement.

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KBB: Average New-Vehicle Prices Rise to Record High in December


IRVINE, Calif. — Average transaction prices closed the year on a strong note, rising nearly 2% in December to a record high of $36,113, Kelley Blue Book (KBB) reported last week.

The increase from the year-ago average was actually 1.6%, or $583. Compared to November, December’s average transaction price was up $66, or 0.2%.

“Incentive spending was a concern in 2017, averaging 10.4% of MSRP, but, encouragingly, this figure held relatively flat over the final quarter of the year,” said KBB analyst Tim Fleming. “In 2018, interest rate hikes could be another concern, as they threaten to increase monthly payments for consumers; however, Kelley Blue Book anticipates they will help contribute to another down year of new-vehicle sales more than impact prices, which have steadily risen along with the economy since the recession.”

Transaction prices for all of 2017 also finished 2% higher than last year. However, the growth was slightly slower than the growth rate recorded in 2015 and 2016, which was at 2.5%.

American Honda’s transaction prices rose nearly 3% in December 2017, with the Honda brand up 4% and Acura flat. The CR-V, Honda’s top seller, continued its strong run with prices up 6%. In addition, the redesigned Honda Odyssey showed the most improvement, rising 14% to top the minivan segment.

Volkswagen Group saw the biggest jump among the major manufacturers, with average prices up 8%. The Volkswagen brand climbed 9%, thanks to its new SUVs, the Atlas and Tiguan, which also are gaining momentum. Porsche climbed 5% on the strength of its new Panamera. Audi was up 4%, with the redesigned A5 and Q5 each rising 10%.

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KBB: Average New-Vehicle Prices Rise to Record High in December


IRVINE, Calif. — Average transaction prices closed the year on a strong note, rising nearly 2% in December to a record high of $36,113, Kelley Blue Book (KBB) reported last week.

The increase from the year-ago average was actually 1.6%, or $583. Compared to November, December’s average transaction price was up $66, or 0.2%.

“Incentive spending was a concern in 2017, averaging 10.4% of MSRP, but, encouragingly, this figure held relatively flat over the final quarter of the year,” said KBB analyst Tim Fleming. “In 2018, interest rate hikes could be another concern, as they threaten to increase monthly payments for consumers; however, Kelley Blue Book anticipates they will help contribute to another down year of new-vehicle sales more than impact prices, which have steadily risen along with the economy since the recession.”

Transaction prices for all of 2017 also finished 2% higher than last year. However, the growth was slightly slower than the growth rate recorded in 2015 and 2016, which was at 2.5%.

American Honda’s transaction prices rose nearly 3% in December 2017, with the Honda brand up 4% and Acura flat. The CR-V, Honda’s top seller, continued its strong run with prices up 6%. In addition, the redesigned Honda Odyssey showed the most improvement, rising 14% to top the minivan segment.

Volkswagen Group saw the biggest jump among the major manufacturers, with average prices up 8%. The Volkswagen brand climbed 9%, thanks to its new SUVs, the Atlas and Tiguan, which also are gaining momentum. Porsche climbed 5% on the strength of its new Panamera. Audi was up 4%, with the redesigned A5 and Q5 each rising 10%.

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KBB: Flat Prices, Higher Incentive Spending Signals Headwinds for New-Car Market


IRVINE, Calif. — Transaction prices continue to rise at a slower pace, with October’s estimated average transaction price expected to rise by $101 from a year ago to $35,263, Kelley Blue Book (KBB) reported on Tuesday. Compared to September, the firm expects the average to increase by $128, or 0.4%.

“Prices in the third quarter were up just 1% after averaging 3% gains in the first half of the year,” said KBB analyst Tim Fleming. “While Kelley Blue Book expects solid sales in October 2017 at 17.9 million SAAR, flat transaction prices combined with ever-growing incentive spending signal headwinds for the new-vehicle market as 2017 nears its end.”

Expected to register the highest year-over-year increase is Fiat Chrysler, with the automaker’s average transaction price on pace to rise 4% from a year ago. The Jeep brand is expected to record a 3% increase in its average, with the redesigned Jeep Compass expected to show a 6% increase in its average.

The firm noted that the wind down of the Jeep Patriot also is helping to drive up average transaction prices for the Jeep brand.

Dodge’s average is expected to climb by 10% from a year ago on the strength of the Durango SUV and its new SRT performance trim, KBB noted.

Volkswagen Group’s average transaction prices are also expected to be among the best performers on a year-over-year basis, rising 2% for the month. The Volkswagen brand alone is expected to show a 4% increase in its average transaction price, thanks, in part, to the recently introduced Atlas SUV and redesigned Tiguan (expected to be up 6%).

The firm said it expects Audi to show a 4% increase in its average transaction price, with the redesigned A5 expected to show a 4% increase on the strength of its new Sportback body style.

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Average Transaction Price Rises in January


IRVINE, Calif. — The average transaction for a new vehicle increased by $1,123, or 3.3%, from a year ago to $34,968, according to Kelley Blue Book estimates. The average, however, was down by $453, or 1.3%, from December 2016.

Driving the year-over-year strength in pricing was a sales mix in favor of utility vehicles, with the Detroit Three among the greatest beneficiaries, the vehicle information site said.

“The changing mix of sales in favor of utility vehicles is the primary driver for the year-over-year strength, as average prices in SUV segments climbed modestly, while the prices of subcompact SUVs declined,” said Tim Fleming, analyst for Kelley Blue Book. “Demand for subcompact SUVs, one of the hottest segments in 2016, appears to be slowing down, although new models from Ford, Nissan and Toyota could help spark interest in the segment.”

The Detroit Three continue to perform well with some of the greatest year-over-year increases. In particular, General Motors climbed 4% in January 2017, as all of its brands reported increases in transaction prices. Cadillac had the greatest gain at 7%, thanks to the new CT6 sedan and XT5 crossover.  Chevrolet rose 3%, with the new generation Camaro showing the most improvement, up 10% year-over-year.  GMC increased 5% on a strong mix of its full-size SUVs, the Yukon and Yukon XL.

Nissan North America also continues to show gains in average transaction price, which was up 5% for January 2017. A sales mix in favor of SUVs and trucks is partially responsible, as well as the new Armada SUV, which recorded an average transaction price increase of 18%. The new Titan also is performing well, up 9%. Infiniti climbed 2% with help from the Q50 (up 9%) and its new lineup of engines, including the 400 horsepower Red Sport trim.

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