Average Transaction Prices Rise in July, KBB Reports
IRVINE, Calif. — Transaction prices continued to rise in July, with the average transaction price increasing 2.5% from a year ago to $34,264, according to analysts at Kelley Blue Book.
“Low interest rates, longer loan terms, and increased leasing are helping consumers afford their monthly payments, which would be upward of $550 per month on a traditional 60-month term,” said Tim Fleming, an analyst for KBB. “As the price gap to late-model used cars increases, more shoppers may turn to the pre-owned market for their next vehicle, which could mark a big departure from the new-car sales growth the industry has seen during the past five years.”
Fiat Chrysler saw the biggest jump in average transaction price, which grew 3.8% from a year ago to $35,153. General Motors followed closely behind with an average transaction price of $39,104, a 3.3% year-over-year increase.
According to the firm, all manufacturers experienced a bump in their average transaction price, with the exception of Nissan. Nissan’s average transaction price inched down by 0.6%. However, the company's best performer was its Infiniti luxury brand, which saw average transaction prices grow 4% due to a higher mix of SUV sales and its Titan XD pickup.
The vehicle segments that experienced highest year-over-year swings in average transaction price were vans, sports cars, mid-size pickup trucks, and high-end luxury cars, with average transaction prices increasing 7.5%, 7.3%, 7.1% and 7.0% from a year ago, respectively.
Follow @FI_Magazine on Twitter