Compared to measures such as market share, revenue, and profit, the transaction price metric is somewhat less popular. However, the average transaction price can tell a very interesting story about the public’s perception of an automobile manufacturer: if car buyers are willing to pay more for a particular brand/vehicle, the net effect is better resale values and improved long-term brand equity.

General Motors had the highest transaction price in the industry through the first five months of this year, coming in at a full $1,410 above the industry average of $29,617, which is an increase of 3.8 percent over 2009 levels. The average industry increase was 3.7 percent, with the Big Three reigning in the highest transaction prices in the industry. Only Chrysler was below average (only by $7).

In the past, pickup trucks and SUV have made such results easily attainable for domestic brands, but increased competition and the effects of the recession have prompted domestics to find more credible ways of reducing inventory (read: making good cars) and lowering incentives. Furthermore, consumers’ thirst for technology options and their willingness to spend money doesn’t hurt either.

As you’d imagine, this is a trend The General would like to continue well into the future. GM’s continued success relies on maintaining or improving good practices such as delivering value and maintaining a fresh, technology-laden, and fuel-efficient product portfolio. Industry-leading results like these are just what GM needs now and into the future and will lead to a healthier bottom line in the long run, not to mention being a feather in The General’s hat when it’s time for its ever-looming IPO.

[Source: Autoblog]