The average transaction price of a Chevy vehicle dipped slightly in December 2021, but remained significantly elevated compared to the same time period the year prior.
According to Kelley Blue Book, the average transaction price of a new Chevy vehicle last month sat at $49,308, down 2.5 percent from November when the brand posted an ATP of $50,562. Despite this small month-to-month dip, Chevy ATPs were 19.6 percent up on a year-over-year basis, with the brand’s ATPs sitting at $41,239 in December 2020.
In a good sign for the brand, Chevy ATPs beat the industry average last month, which stood at $47,077 – up 1.7 percent from November and up 14 percent year-over-year.
Unsurprisingly, these rising ATPs were due to the ongoing inventory shortage in the auto industry, KBB said, which has virtually eliminated incentive spending across the industry. Automakers have been struggling to keep pace with elevated vehicle demand in recent months due the semiconductor chip shortage and various other supply chain and labor issues.
“New-vehicle inventory levels remain tight, and with sufficient consumer demand, dealers continue to hold prices at or above the manufacturer’s suggested retail price (MSRP),” KBB said.
Another reason for rising ATPs is the types of vehicles consumers are buying. Market share for passenger sedans and hatchbacks reached one of the lowest levels ever in December at 22.7 percent as consumers bought up more crossovers and pickup trucks. The average transaction price for crossovers and SUVs last month stood $46,908, compared to just $42,460 for passenger cars. Cars also had higher incentives offered than other vehicle types due to this lower demand.
For Chevy, it is currently enjoying higher than usual ATPs due to high demand for its pricier, larger vehicle types, such as the Chevy Tahoe, Suburban and, most importantly, the Silverado 1500 and Silverado HD. The automaker only sells two passenger car models, the Spark and Malibu, both of which sell in small numbers compared to its truck and crossover offerings.