The Surge Has Peaked: New Vehicle Prices Not Setting Records – Remarketing

0 0
Read Time:2 Minute, 32 Second



New-vehicle average transaction prices dropped in all segments except vans in January 2022. This chart shows monthly price declines versus year-over-year increases, still hovering above average MSRPs. - Source: Kelley Blue Book

New-vehicle common transaction costs dropped in all segments besides vans in January 2022. This chart reveals month-to-month worth declines versus year-over-year will increase, nonetheless hovering above common MSRPs.

Supply: Kelley Blue Ebook

New-vehicle common transaction costs (ATPs) decreased to $46,404 in January 2022 after reaching a file excessive in December 2021, based on new information launched Feb. 9 by Kelley Blue Ebook.

Costs fell 1.8% ($839) month over month largely resulting from fewer luxurious autos being bought in January, however costs stay elevated in comparison with one 12 months in the past, up 12.5% ($5,155) from January 2021.

With new-vehicle provide holding regular on the similar stage since Thanksgiving and buyer demand remaining sturdy, sellers proceed to carry costs at or above the producer’s urged retail worth (MSRP).

“The surge in new-car costs seems to have peaked,” stated Michelle Krebs, government analyst for Cox Automotive. “But, whereas we count on automobile provide to enhance, it would proceed to be tight significantly by means of the primary half of the 12 months. Due to this, we count on costs to stay excessive for the foreseeable future, however automotive buyers can relaxation assured we don’t anticipate any extra file highs.”

The common worth paid for a brand new non-luxury automobile final month was $42,859, down $294 and marking the third consecutive month-to-month lower. Nevertheless, whereas the common MSRP on a non-luxury automobile has decreased over the previous 4 months, automotive buyers nonetheless are paying on common greater than $900 above sticker worth. Customers have paid greater than MSRP for every of the final eight months, whereas one 12 months in the past, non-luxury autos had been promoting for greater than $1,600 underneath MSRP.

Luxurious automobile gross sales fell to 16.3% of whole gross sales in January, down from 18.4% of whole gross sales in December 2021, which helped to drive total ATPs to a file excessive on the finish of final 12 months. In January 2022, the common luxurious purchaser paid $64,635 for a brand new automobile, down $804 month over month however nonetheless greater than $1,300 above sticker worth. For comparability, luxurious autos had been promoting for greater than $2,400 underneath MSRP one 12 months in the past.

New-vehicle common transaction costs dropped in all segments besides vans in January 2022. With an ATP of $41,169, automobiles noticed the biggest worth lower of $1,263, adopted by SUVs ($45,512 ATP) with a lower of $913 and vans ($54,331 ATP) with a $483 lower. In the meantime, vans elevated by $1,308 to succeed in a median transaction worth of $48,207 and had the bottom incentives (expressed as a p.c of ATP) at 1.7%. General incentives continued to carry on the file low stage of three.9% set in December 2021.

 

 

Initially posted on Vehicle Remarketing



Source link

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%