Average New Vehicle Prices Up Nearly 3% in October
Kelley Blue Book analysts say the average new vehicle transaction climbed to $38,259 in October, a slight decline from the prior month but 2.9% higher than a year ago.
The cost to buy a Ford Explorer increased by nearly 6% year-over-year in October.
Photo courtesy Ford Motor Co.
IRVINE, Calif. — The valuation analysts at Kelley Blue Book reported the estimated average transaction price for a light vehicle in the United States was $38,259 in October 2019. New-vehicle prices increased $1,064 (up 2.9%) from October 2018, while decreasing $141 (down 0.4%) from September.
“Average transaction prices were generally favorable for most automakers, as the industry average climbed 3% year-over-year, partially due to the shifting sales mix from cars to trucks and SUVs,” said Tim Fleming, analyst for Kelley Blue Book. “However, car prices did grow by 2% in October 2019, their biggest improvement in nearly a year.”
Manufacturers are focusing incentive programs on the increasingly competitive utility segments, Fleming noted, helping make those vehicles more affordable to consumers. Trucks have shown the most strength of any segment with full-size trucks up 3%, while mid-size trucks rose 6%, aided by new and redesigned models.
Among the top performers, Ford was up nearly 6% in October 2019 with Ford and Lincoln brands both enjoying increases. The Nautilus had the best month for Lincoln, rising 5%, and the Aviator is having a solid impact, transacting in the high $60,000 range. The redesigned Explorer saw the most improvement, up 15%, while the refreshed Edge was up 4%.
Fiat Chrysler and General Motors also reported strong average transaction prices for October 2019, both up nearly 4% year-over-year.
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