Pandemic-induced ATPs receding as inventories, incentives ascend.
Average vehicle transaction prices continue to soar, according to data released by Kelley Blue Book.
The most recent Consumer Price Index from the U.S. Bureau of Labor Statistics shows a slight but promising decline in used car prices.
September new light-vehicle sales fell for the 5th consecutive month to a SAAR of 1.2 million units, reported the National Automobile Dealers Association (NADA).
Current market trends are playing right into the F&I product pitch, but they also reveal trouble ahead for the automotive retail industry at large.
With cars expected to make up only 31% of July sales, the industry's average transaction price climbed by $985 from a year ago to $35,359.
May's average transaction price for light vehicles rose by a healthy 3%, even as new-vehicle demand is expected to falter in 2018, according to the vehicle information site.
Less price-sensitive buyers splurged for the latest models in April, with the industry’s average transaction price rising 2% from a year ago despite rising fuel prices.
Transaction prices have remained unaffected so far this year by the expected slowdown in new-vehicle demand. Notable increases were recorded by American Honda, Toyota Motor Co., and Volkswagen.
New-vehicle transaction prices are being driven higher by the shifting sales mix away from cars. Ford’s strong mix of F-Series Super Duty sales for the month helped drive up the automaker’s average transaction price by nearly 3%.
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