Discounts, Incentives Stabilize New Vehicle Prices in November
Kelley Blue Book reports the average cost to buy a new vehicle was $38,393 last month, a 1% year-over-year increase restrained by frantic efforts to move 2019-MY inventory.
Average transaction prices for the Acura MDX fell by 7% year-over-year in November, one of a number of brands and models slowing the growth of new vehicle prices industrywide.
Photo courtesy American Honda 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 $38,393 in November. New-vehicle prices increased $387 (up 1%) from November 2018, while climbing $106 (up 0.3%) from last month.
“Transaction prices rose only 1% as dealer discounts grew to move older inventory,” said Tim Fleming, analyst for Kelley Blue Book. “As retail sales slowed by more than 2% this year, vehicles are spending more time on dealer lots, about 80 days on average, which is five days longer than a year ago and the highest level seen since 2017. As a result, there are more discounts and incentives, especially now that the year’s end is approaching.”
New three-row SUV models and electric vehicles helped Hyundai Kia most.
Once again, Hyundai Kia showed the greatest improvement of all manufacturers, as its prices grew 10%. Interestingly, new three-row SUV models and electric vehicles helped the brands most. The Hyundai Palisade and Kia Telluride SUVs both transacted at more than $40,000 on average, while the Hyundai Kona EV and Kia Niro EV helped boost these models’ average transaction prices by 8%.
American Honda prices fell by 2%, with Acura down 5% and Honda dropping 1%. The Acura MDX had the biggest decline for Acura at 7%, and the RDX, Acura’s top seller, dropped 2%. The Honda Clarity fell the most for the brand at 6%, while the Ridgeline also trended down by 6%. On a positive note, the Honda Civic was the automaker’s top performer, up 3%.
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