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.
The updated 2022 Chevy Silverado will hit dealers shortly
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.
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Comments
Pay more for less!
So much for Chevy being the entry level brand and catering to the little guy.
Looks like I’m going to be keeping my Chevy Spark for a long time.
They’re pricing themselves out of the middle class wage range. Problem is.. They’re not as high end as they are priced. Other than the C8 there’s not much worth the asking price.
So much for following the Alfred Sloan policy: Price laddering or a price for every pocket book.
Helped Chevy overtake Ford. Now a fleeting marketing concept for Generous Motors!
I don’t remember seeing a 23% increase in my social security
I bought my daughter a Hyundai Veloster Turbo R Spec with a manual transmission. It was $20,500. A whole lot of fun for a whole lot less money than anything you can get from Chevrolet. It very disappointing that Chevrolet has moved away from affordable fun cars. And now it sounds like they’re going to kill the Camaro.
The Chevy Cavalier/Monza here would be a good start also a CT5 Malibu replacement would be awesome.
OTOH it isn’t like Chevy isn’t moving any metal, look at Hyundai ATP vs Chevy ATP and you see why the focus is on trucks.
From my understanding, the reason the average transaction price seems o high for an “entry-level” brand is that their sales for smaller and more affordable cars like the Spark, Malibu, Traverse, Equinox, and so forth have decreased in sales dramatically while their bigger and more expensive vehicles like the Tahoe, Suburban and Corvette have increased in sales which is due to GM prioritizing the units that they’ll make fore money off of. Remember that they’re a business that wants to survive in these uncertain times. They’re making smart moves by selling more of what they can make a big profit off of.