New vehicle prices hit a record high in June according to Kelley Blue Book - topping the $48,000 mark for the first time ever with a record high luxury share pushing the average transaction price (ATP) higher. Due to low inventory and high demand, incentives also dropped to a record low last month averaging only 2.3 percent of the average transaction price.
In its press release, KBB reports that the new-vehicle ATP increased to $48,043 in June 2022, which surpasses the previous high of $47,202 set in December 2021. June prices rose 1.9% ($895) from May and were up year over year 12.7% ($5,410) from June 2021.
Better news on the inventory front. There is a bit more inventory out there. KBB says new vehicle inventory inched up to the high 30s in June - after being in the mid-30s in January. Consumer demand remains strong even in this climate driven by supply issues. KBB says due to this, many dealers are continuing to sell vehicles at or above MSRP. The average price paid for a new vehicle has been "over sticker" throughout 2022.
The new vehicles selling the most over MSRP in June were vehicles from Honda, Kia and Mercedes-Benz, transacting on average between 6.5% and 8.7% over MSRP. On the other end of things, Buick, Lincoln and Ram were selling at nearly 1% below MSRP.
The average price paid for a new non-luxury vehicle last month was $43,942, up $615 from May, the highest price for a non-luxury vehicle on record. Car shoppers in the non-luxury segment paid on average $1,017 above sticker price. Consumers have paid roughly $1,000 more than MSRP in each month of 2022 versus only $158 over MSRP in June 2021.
"While prices for the industry are, on average, higher than MSRP, there are some non-luxury segments that are more affordable such as compact cars and compact SUVs/crossovers," said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. "These segments are selling for more than 30% less than the industry average transaction price."
The luxury share of the market remains historically high and is driving up the ATP. In June 2022, the average luxury buyer paid $66,476 for a new vehicle, up $1097 month over month, the highest price for a luxury vehicle ever. For comparison, luxury vehicles were selling for nearly $825 under MSRP one year ago. Luxury vehicle share increased to 18% of total sales in June, up from 17.3% in May.
Electric vehicle ATP's are up as well. KBB reports the average price paid for a new electric vehicle (EV) increased in June by 3.8% from May and was 13.7% higher than a year ago. The average price for a new electric vehicle – over $66,000, according to KBB estimates, is well above the industry average and more aligned with luxury prices versus mainstream prices.
High gas prices are also driving demand for hybrids. Hybrid/alternative energy vehicles are selling at just over $39,000 in June, a $3,593 increase over May, and an $8,453 increase versus a year ago.
New-vehicle average transaction price changes month over month by segment saw prices mixed in terms of increases and decreases. With an ATP of $39,040, hybrid/alternative energy cars saw the largest increase of $3,593. Hybrids have been in the lowest supply lately of any segment. With an ATP of $66,997, electric vehicles saw an increase of $2,444 in June, while vans increased by $658 to an ATP of $50,126. The different car segments showed nominal increases in average transaction price in June versus May. Also in extremely short supply, compact cars were up only $146 or 0.6%, while mid-size cars were up 1%, or $325 for the month. Luxury cars showed a 6.4% decrease in ATP and full-size cars showed a 0.2% decrease. Meanwhile, electric vehicles had the lowest incentives (as a percentage of ATP) of 0.4%, and entry-level luxury cars had the highest of 3.4%. Incentives dropped to a record low level in June, averaging only 2.3% of the average transaction price.
Check out Kelley Blue Book's press release provided data in the charts below:
|
Manufacturer |
June 2022 |
May 2022 |
June 2021 |
Month- |
Year- |
|
BMW |
$66,390 |
$66,176 |
$59,326 |
0.3 % |
11.9 % |
|
Daimler |
$76,601 |
$76,172 |
$66,226 |
0.6 % |
15.7 % |
|
Ford Motor Company |
$54,602 |
$52,135 |
$50,364 |
4.7 % |
8.4 % |
|
Geely Auto Group |
$60,512 |
$61,322 |
$53,165 |
-1.3 % |
13.8 % |
|
General Motors |
$50,357 |
$50,636 |
$48,707 |
-0.6 % |
3.4 % |
|
Honda Motor Company |
$37,699 |
$38,157 |
$33,093 |
-1.2 % |
13.9 % |
|
Hyundai Motor Group |
$36,161 |
$35,946 |
$31,834 |
0.6 % |
13.6 % |
|
Mazda Motor Corporation |
$29,953 |
$30,746 |
$31,587 |
-2.6 % |
-5.2 % |
|
Renault-Nissan-Mitsubishi Alliance |
$35,496 |
$36,239 |
$32,225 |
-2.1 % |
10.2 % |
|
Rivian |
$72,902 |
$72,973 |
- |
-0.1 % |
- |
|
Stellantis |
$53,976 |
$53,997 |
$49,729 |
0.0 % |
8.5 % |
|
Subaru Corporation |
$35,194 |
$33,814 |
$35,212 |
4.1 % |
-0.1 % |
|
Tata Motors |
$84,808 |
$88,218 |
$80,719 |
-3.9 % |
5.1 % |
|
Tesla Motors |
$68,392 |
$64,969 |
$61,149 |
5.3 % |
11.8 % |
|
Toyota Motor Corporation |
$40,111 |
$39,127 |
$38,544 |
2.5 % |
4.1 % |
|
Volkswagen Group |
$56,629 |
$55,313 |
$49,058 |
2.4 % |
15.4 % |
|
Industry |
$48,043 |
$47,275 |
$42,633 |
1.6 % |
12.7 % |
|
*Kelley Blue Book average transaction prices do not include applied consumer incentives
|
