(November 1, 2016) IRVINE, Calif. — The analysts at Kelley Blue Book today reported the estimated average transaction price (ATP) for light vehicles in the United States was $34,663 in October.  New-car prices have increased by $783 (up 2.3 percent) from October 2015, while remaining flat from last month.

"Transaction prices continue their upward trajectory in October, rising nearly $800 year-over-year to $34,663," said Tim Fleming, analyst for Kelley Blue Book. 

"The Detroit automakers posted gains between 4 and 6 percent, as their strong portfolios of trucks and SUVs align extremely well with current consumer demand.  Despite the increases in transaction prices, incentive spending across the industry continues to climb as well, offsetting much of the transaction price gains.  With industry sales reaching a potential plateau, automakers should adjust production to better match demand, which should reduce the need for such high incentives."

Fiat Chrysler reports the highest transaction price gain of all major manufacturers in October 2016 at 5.7 percent.  The Chrysler brand is up 13 percent, thanks to the new Pacifica, which is transacting at the top of the minivan segment.  Jeep, the highest volume brand for Fiat Chrysler, is up 2.5 percent as all models in its lineup increased.

Ford Motor Company increased 4 percent, due to a strong month for the Explorer (up 7 percent) and the Transit van, which also climbed 7 percent.  The Lincoln brand was flat, although the new Continental is helping the brand's average by transacting nearly 20 percent higher than the MKS, which it replaced. 

Also among the greatest year-over-year increases, General Motors reports a good month with a 4 percent increase, as the Cadillac and GMC brands are up most.  Cadillac rose nearly 8 percent with strength from its new models, the XT5 and CT6.  GMC is up 5 percent on a strong mix of full-size SUVs.