The average transaction price of a General Motors vehicle increased by more than ten percent from May 2020 to May 2021.
According to analysts at Kelley Blue Book, the average transaction price for a Buick, Chevy, Cadillac or GMC vehicle in May was a significant $48,544 in May – up from $43,784 in May of last year. That’s a price increase of 10.91 percent year-over-year and the third-highest percentage increase in the industry behind Stellantis, which saw its average transaction price climb by more than 11 percent to $48,093. Mitsubishi led the way with a 12 percent year-over-year increase and an average transaction price of $25,221.
Industry-wide, new vehicle prices increased from $39,138 to $41,263 year-over-year in May – a percentage increase of 5.43 percent. An analyst from Cox Automotive that spoke to KBB said these results highlight “an all-time high in year-over-year growth for the month of May,” within the auto industry.
Production setbacks related to the COVID-19 pandemic and semiconductor shortages have led to lower-than-usual vehicle inventories for many automakers in recent months. At the same time, a resurgent U.S. economy has driven up demand for new vehicles throughout the first six months of the year. KBB says its data does not take into account applied customer incentives, however, so it seems these results are being driven solely by demand for larger and pricier vehicles.
Indeed, the data seems to indicate that larger vehicles account for the majority of the growth. The average transaction price of a full-size SUV or crossover has increased by 10.1 percent since May of last year, KBB’s data indicates, while minivans have shot up in price by a whopping 15.4 percent. Full-size luxury SUVs/crossovers were up by 10.4 percent as well, while full-size truck prices were up by 7.5 percent.
GM was among the hardest-hit manufacturers by the semiconductor shortage, though the automaker has maintained a steady supply of its full-size truck and SUV models by prioritizing its chip supply for these vehicles. Despite its efforts, the chip shortage is expected to affect vehicle output and inventory throughout 2021. The shortage could cost the industry a collective $110 billion in revenue in 2021 as a result, according to a prediction from consulting firm AlixPartners.
Subscribe to GM Authority for more average transaction price news and General Motors news coverage.
Comments
No rebates + dealers who will tell you to take it or do not let the door hit you where the sun wont shine
That’s why we need higher interest rates.
I’m glad GM Corp is doing relatively well, considering the chip and other supply chain issues, but would rather walk before paying full price for a car, new, used or otherwise. The last time we came remotely close to little or no incentives was early ’92 after the recession of ’91 was over. Gas was cheap and Americans were head over heels for a new product, the SUV. Ford and (nee Chrysler) couldn’t build enough of the Explorer and Grand Cherokees through the 90s. The days of dealerships dreading people like me (I’m the guy who walks in with a folder full of Edmunds invoice price printouts) will come back once supply chain issues are resolved.
Come on higher interest rates.
Time to crash this bubble party.
1Girls for s*ex in your city – bit.ly/4you4Ever
Alice go away with your spam smutt or what ever it is
As long as people continue to pay outrageous prices the dealers and manufacturers are willing to take their money. That’s capital working at its finest. You have to blame the people who keep paying the high prices not the dealers. If people would quit buying theses high priced vehicles the price would drop like a rock.
Alice is a pitiable soul who needs our prayers. A sick mind to make that comment on an auto related topic. So sad.
POOR FORM GM…. doing away away with First Responder and Educator discount on all vehicles except Chevrolet models after over a full year of keeping patients and students healthy/alive during a pandemic. To add insult to injury, this was done on May 4th, 2021, right at the time these 2 professions should be appreciated; Nurse Appreciation Week May 6-12. 2021 and Teacher Appreciation Week May 2-8, 2021……
How about a taxpayer discount? We paid for the gm bailout!
Yet ads for some of their vehicles are 7,500, 10,000 off of sticker etc. THEY ARE SCREWING YOU PEOPLE ! Just like the ridicules DOC fees which are not required by law in any state. 4,5,6,7 hundred dollars,for what to sign a few pieces of paperwork to get your title and registration and submit your loan if you have one STOP GETTING SCREWED, tell them you are not paying the doc fee or you will not buy the car and WALK OUT. Take back your control if you stop buying they have a problem. Auto sales are the worst sales business there is. Carmax doesn’t have a DOC fee they dropped it years ago, WHY.