As the semiconductor chip shortage persists, the cost of purchasing a new vehicle continues to rise. Even General Motors’ budget-minded Chevrolet brand has seen prices rise dramatically this year and August was no exception, with the average transaction price of a Bow Tie-badged vehicle surpassing $47,000 by the end of the month.
According to an analysis from Kelley Blue Book, ATPs for Chevrolet increased 1.7 percent between July of 2021 and August of 2021, rising from $46,223 to $47,025. This was up 36.2 percent from August of 2020, when the COVID-19 pandemic cratered foot traffic at many auto retailers across the country.
The ATP of a Chevrolet vehicle surpassed the industry average in August, which stood at $43,355. Kelley Blue Book said this marks the fifth straight record-setting month for new-vehicle ATPs – an effect that has been brought on due to increased demand and low vehicle production caused by the global chip shortage. The industry ATP was also up 9.6 percent year over year last month, rising from $39,571 in August 2020.
Cadillac ATPs reached $74,000 in August of 2021, while GMC ATPs rose to $58,010. Combined, ATPs at General Motors’ four U.S. brands (Buick, Cadillac, Chevy, GMC) were up 0.3 percent between July 2021 and August 2021, rising from $49,343 to $49,468.
Kayla Reynolds, an analyst for KBB’s sister company, Cox Automotive, said low inventory levels and minuscule incentive spending have driven up new vehicle prices dramatically this year and that this trend shows little sign of letting up.
“The automotive industry is still reeling from the extraordinary circumstances of the last year and a half, setting new records seemingly left and right,” Reynolds explained. “With the ongoing inventory challenges that auto manufacturers are facing across the board, coupled with historically low incentive spending, car shoppers end up being the ones paying the price, quite literally. New-car prices just continue to climb, month after month.”