New-Car Average Prices Hit $40,000

By Staff Writer February 16, 2021

The valuation analysts at Kelley Blue Book reported the estimated average transaction price for a light vehicle in the United States was $40,857 in January 2021. New-vehicle prices increased $2,110 (up 5.45 percent) from January 2020, while falling $295 (down 0.72 percent) from last month.   

“January 2021 prices are coming off a historical fourth quarter, with average transaction prices reaching more than $40,000 for the first time at the end of 2020,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive.

Minivan prices reported the largest year-over-year growth

“As we have seen the last few years, we expect transaction prices to continue to grow,” she said. While many manufacturers saw year-over-year growth, FCA/Stellantis had the largest overall price increase at nearly 10 percent.

Fiat was the greatest contributor to FCA/Stellantis’ price hikes, up 25 percent year-over-year. The brand recently discontinued its lowest priced model, Fiat 500, increasing average transaction prices from this time last year. Alternatively, Mitsubishi had the largest year-over-year drop, down 8 percent. The brand’s two highest priced models, Eclipse Cross and Outlander, saw significant year-over-year declines in sales.

At the segment level, minivan prices reported the largest year-over-year growth, up 12 percent, while the luxury car category followed closely behind with a more than 11 percent year-over-year average transaction price increase. Among minivans, Toyota Sienna and Chrysler Pacifica were the largest drivers for price increases. Additionally, luxury cars benefited from many discontinued lower-priced models, such as the BMW 6 Series, Infiniti Q70, and Cadillac CT6.

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Last modified on Thursday, 18 February 2021 14:43