Average new-vehicle prices up nearly 3 percent year-over-year, Kelley says

(November 4, 2019) IRVINE, Calif. — The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $38,259 in October. New-vehicle prices increased $1,064 (up 2.9%) from October 2018, while decreasing $141 (down 0.4%) from last month.  

"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, their biggest improvement in nearly a year."

Manufacturers are focusing incentive programs on the increasingly competitive utility segments, 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 Motor Company was up nearly 6% in October 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, both up nearly 4% year-over-year.