New-Car Transaction Prices Up Nearly 2 Percent Year-Over-Year, Down From Last Month, According To Kelley Blue Book

IRVINE, Calif., April 3, 2017 -- The analysts at Kelley Blue Book www.kbb.com, the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today reported the estimated average transaction price (ATP) for light vehicles in the United States was $34,342 in March 2017. New-car prices have increased by $587 (up 1.7 percent) from March 2016, while falling $133 (down 0.4 percent) from last month.   

"New-car prices are up yet again by just under 2 percent, which is a slightly lower increase than in the first two months of the year," said Tim Fleming, analyst for Kelley Blue Book. "While numbers for automakers are mostly flat to slightly positive, there are signs of weakness in some popular vehicle segments. Perhaps most notably, the full-size truck segment is down 2 percent year-over-year, a rare occurrence for this category, which has seen large price improvements over the last few years. Also, transaction prices for subcompact SUVs, one of last year's hottest segments, are down 3 percent as demand for the small utility vehicles appears to be leveling off."

Rising incentives and discounts on cars have become common, but now they are growing more in truck and SUV segments, due to slowing consumer demand for new vehicles and high levels of inventory available.

Nissan North America is up 5 percent again in March 2017, continuing a strong run of improving transaction prices. The Nissan brand rose 5 percent on a much higher mix of SUVs versus last year, led by the Rogue. The redesigned Armada climbed 18 percent as it attempts to make headway in the full-size SUV segment, which has traditionally been dominated by General Motors. Infiniti was up just 1 percent, helped most by the Q50 sedan, which was up 6 percent, and the recently redesigned Q60 coupe, also up 6 percent.

On the other hand, Volkswagen Group average transaction prices fell more than 2 percent, although the Audi brand did rise 5 percent. Audi's redesigned A4 sedan was up 7 percent, while the new A4 allroad was up 11 percent. Meanwhile, Volkswagen was flat, while Porsche was down 7 percent on a higher mix of its entry-level model, the Macan. 

*Kelley Blue Book average transaction prices do not include applied consumer incentives