New data from Kelley Blue Book (KBB) reveals that in January 2023, the average transaction price (ATP) of a new vehicle in the United States saw a slight decline to $49,388, though premium vehicles now account for a larger share of the market than ever before.
In particular, luxury vehicle sales accounted for 19.6 per cent of the overall market in January 2023, a new record and rising from the 18.6 per cent in December 2022. Those in the market for a premium model paid an average of $65,953 last month. While this represents a $1,560 decrease from December, buyers continue to pay over MSRP for many new luxury vehicles.
As for the broader new car market, Kelley Blue Book has revealed that the average transaction price in the U.S. declined slightly in January to $49,388, a fall of 0.6 per cent from December but still up 5.9 per cent from 12 months ago. The average price of a non-luxury vehicle in January dropped $271 from December to $45,344 with most non-luxury brands seeing declines in the average transaction prices for their vehicles.
Read: Used Car Prices Climbed 2.5% In January, Still Below Recent Highs
“The transaction data from January indicates that overall prices are no longer increasing like they were a year ago,” research manager of economic and industry insights for Cox Automotive, Rebecca Rydzewski, said. “Both luxury and non-luxury prices were down month over month, but the mix of luxury vehicle sales last month – at a record high near 20% – helped keep the overall average price elevated.
Kelley Blue Book’s data also reveals that the average price paid for a new EV in January declined considerably, dropping 5.4 per cent or $3,363 from December, and hitting an average of $58,725. This drop in the average price was triggered primarily by Tesla’s significant price cuts. The automaker’s average transaction prices fell by 8.4 per cent month over month to $5,440.
Meanwhile, incentives remain low compared to before the COVID-19 pandemic but did increase to 2.8 per cent in January from 2.7 per cent in December.
