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.