New Car Deals? Naaah, Despite COVID-19 March 2020 Average New-Vehicle Prices Up Nearly 3% Year-Over-Year According to Kelley Blue Book
IRVINE, Calif., April 1, 2020 – The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $37,736 in March 2020. New-vehicle prices increased $972 (up 2.6%) from March 2019, while dropped $38 (down 0.1%) from last month.
“While the automotive industry and broader U.S. economy were brought to a near halt in March, average transaction prices remained stable from February and increased from this time last year, showing strength in line with the first two months of the year,” said Tim Fleming, analyst for Kelley Blue Book. “Prices were supported by the abundance of incentives quickly enacted by manufacturers and their captive finance companies, including 0% financing for 84 months and payment deferrals of up to 180 days.”
With most of the country encouraged to stay at home for at least another month and unemployment skyrocketing as a result, the impact of this year’s auto sales will be severe. However, production is also at a standstill, as North American factories have been shut down for weeks. This coincidental drop in demand and lack of new supply is extraordinary. For March, new-vehicle prices remain solid, but there are still many unknowns about April and what the state of the economy will be for the remainder of the year.
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Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book is a Cox Automotive brand.
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