KBB: New-Car Prices Continue Climb

By Staff Writer March 17, 2021
Tesla had the most growth  month over month at nearly 8%, the Model X doubled in sales last month Tesla had the most growth month over month at nearly 8%, the Model X doubled in sales last month

The valuation analysts at Kelley Blue Book recently reported the estimated average transaction price for a light vehicle in the United States was $41,066 in February 2021. New-vehicle prices increased $2,515 (up 6.52 percent) from February 2020, while falling $31 (down 0.08 percent) from January 2021.   

“February’s average transaction price performance year-over-year has continued to climb,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “On the other hand, month-over-month performance showcases the impact of the luxury and non-luxury mix in the market—with more than half of the luxury vehicle segments reporting drops in transaction prices from January 2021.”

Most manufacturers saw year-over-year growth in February 2021; however, Stellantis reported the greatest increase, up 12.27 percent, while Mitsubishi saw the biggest decline, down 6.67 percent.

The Dodge Durango saw an increase in sales in 2020

Driving Stellantis’ success, were Dodge, Fiat, and Ram, all of which were in the top five for year-over-year brand transaction price increases. The Dodge Durango saw an increase in sales year-over-year, and also benefitted from being the highest priced vehicle in the brand’s lineup. Dodge also discontinued the Dodge Caravan in 2020, which was one of its lower-priced models. Additionally, despite a dip in sales from last year, Ram’s pickup saw more than 10 percent growth in its average transaction price.

For the second month in a row, Mitsubishi’s two highest priced models—the Eclipse Cross and Outlander—saw year-over-year drops in sales, bringing the average transaction price for the brand down nearly 7 percent.

The month-over-month view shows Tesla with the most growth at nearly 8 percent, while Volkswagen decreased most, down 4.07 percent. Tesla’s lowest priced model, Model 3, reported a subtle drop in sales, while its highest priced model, Model X, more than doubled in sales from the previous month—pushing transaction prices up for the brand.

At a segment level, minivans experienced the largest year-over-year growth, up 14.9 percent, with the luxury car segment following closely behind with more than 14 percent growth year-over-year in average transaction prices. High performance cars saw the largest drop in average transaction price in February at 6.17 percent.

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Last modified on Friday, 19 March 2021 18:05