The average transaction price of a Chevy Spark, the cheapest new vehicle available for purchase in the United States, topped $17,000 in September.
While new vehicle transaction prices have risen rapidly throughout 2021, it’s somewhat alarming to see the Chevy Spark is not immune from the trend. The subcompact hatchback has a base price of just $14,990 including destination and freight charges, although the range-topping 2LT Automatic trim level starts at $19,490 with DFC.
Transaction prices in the fall are typically lower than the rest of the year as automakers look to clear out their remaining inventory to make way for new models. However, there were fewer than 1 million new vehicles for sale in the United States at the end of September – down from 2.5 million last year and 3.5 million in 2019. With inventory already minuscule and demand high, there’s little reason for automakers to offer any discounts to customers.
“Normally, automakers and dealers are selling down old inventory at discounted prices at this time of year to make room for the new model year vehicles,” KBB said. “This year, no old inventory exists. Incentives are at a 20-year low.”
The global semiconductor chip shortage has tanked auto production worldwide and left many automakers scrambling to obtain the chips they need to keep plants up and running. Despite critically low inventory levels, demand for new vehicles remains extremely high – resulting in a simple supply-and-demand effect that has driven ATPs up significantly.
“Though fewer new cars are arriving at dealerships, Americans are flush with cash,” KBB added. “Thanks to an ongoing economic recovery and government stimulus programs meant to ease the economic hit from the COVID-19 pandemic, we’re shopping again.”
The average transaction price for the Chevrolet brand surpassed $50,000 in September, driven mainly by sales of full-size vehicles like the Chevy Silverado and Chevy Tahoe, along with the C8 Corvette Stingray.