The average transaction price of a Chevrolet vehicle topped the $50,000 mark in September.
According to an analysis from Kelley Blue Book, ATPs for Chevrolet increased 7.1 percent between August and September, rising from $47,095 to $50,451. This was up 23.3 percent from September of 2020, when the COVID-19 pandemic still showed lasting effects on U.S. vehicle sales.
Just as in August, Chevrolet’s ATPs surpassed the industry average for the month, which stood at $45,031. Seeing such high ATPs from Chevrolet is somewhat surprising, as it serves as GM’s budget-friendly, mass-market brand. Like most other vehicle brands, though, the high ATPs are being driven by the rising popularity of mid-size and full-size SUVs, along with pickup trucks. Chevy also has the hot-selling C8 Corvette in its stable, which transacted for an average of $89,788 in September 2021.
Kayla Reynolds, an analyst for KBB’s sister company, Cox Automotive, said September’s high ATPs can be attributed to the popularity of larger vehicles.
“The record-high prices in September are mostly a result of the mix of vehicles sold,” Reynolds explained. “Midsize SUV sales jumped in September compared to August and full-size pickup share moved up as well. Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated.”
As expected, incentive spending continued on a downward trend in September. KBB says incentive spending fell to another record low of 5.2 percent of ATP for the month, down from 5.6 percent in August. Consumers have shown a willingness to spend big bucks to get the vehicle they want amid the global semiconductor chip shortage, often paying MSRP or sometimes even above the asking price.
“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,” Reynolds observed in September. “New-car prices just continue to climb, month after month.”
The global chip shortage will likely not be resolved until late 2022 or 2023, experts said previously. For this reason, ATPs will likely continue to set new records in the coming months.