The average transaction price of a new GMC crossover, truck or SUV rose by about three percent in July 2021.
According to automotive market research firm Kelley Blue Book, a GMC vehicle sold for an average of $56,938 in July 2021 – up three percent from $55,288 in June. The ATP of a GMC vehicle has also risen by 9.3 percent year-over-year from $52,081.
KBB’s experts believe low inventory levels brought on by various pandemic-related production setbacks, along with a shift in consumer tastes to larger, pricier vehicles, are working to drive higher ATPs. High demand has also reduced incentive spending across the industry, with many consumers willing to pay the MSRP or sometimes more to lock down the vehicle they’re looking for.
“While transaction prices marked new highs in July, new-vehicle incentives continue to fall,” said Kayla Reynolds, an analyst for KBB’s sister brand, Cox Automotive. “Last month, incentives amounted to just 5.9 percent of ATP, the lowest amount in more than a decade. Excellent new-vehicle deals are certainly hard to find.”
A shift in tastes to larger vehicles is great news for GMC, as the premium brand only sells crossovers, full-size SUVs and pickup trucks. GMC’s impressively high ATPs were likely driven by demand for the pricy GMC Yukon and Yukon XL, which were completely redesigned for the 2021 model year, along with continued demand for the GMC Sierra 1500 and GMC Sierra HD pickups.
GMC sales were up 50.4 percent to 153,025 units in Q2 2021. The Sierra 1500 led the way with sales of 53,640 units, while the GMC Acadia was close behind with sales of 26,266 units. Sales of the GMC Yukon were also strong at 23,857 units, while the GMC Sierra HD was just behind with sales of 21,855 units.
Going forward, KBB predicts these elevated ATPs will see auto sales slow down. The research firm saw new vehicle sales slip in June and July after strong sales months in March, April and May. The seasonally adjusted new vehicle sales pace in July was also the slowest in a year, it said.