The average transaction price of a new GMC vehicle dipped slightly in December 2021, but just like the closely related Chevy brand, remained significantly elevated compared to the same time period last year.
According to Kelley Blue Book, the average transaction price of a new GMC vehicle last month sat at $61,448, down 2.3 percent from November, when the brand posted a slightly higher ATP of $62,863.
While GMC ATPs saw a small month-to-month dip between November 2021 and December 2021, the brand’s ATPs were still up 12.6 percent up on a year-over-year basis. The average price of a new GMC product in December 2020 stood at $54,558.
Just like the Chevy brand, GMC ATPs also beat the industry average last month, which stood at $47,077 – up 1.7 percent from November and up 14 percent year-over-year. Rising ATPs have been a consistent theme in the auto industry over the past year or so, with inventory shortages compounding with high demand to reduce manufacturer incentive spending. As such, incentive spending fell to the lowest level on record last month, averaging only 3.9 percent of the average transaction price.
“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 in an analysis.
As many readers of this site will already know, those aforementioned inventory shortages have mainly been driven by the global semiconductor chip shortage, which has interrupted production output for nearly every major automaker, with the Detroit Big Three hit the hardest.
Higher demand for large vehicles such as crossovers full-size trucks and SUVs has also contributed to rising ATPs. Market share for passenger sedans and hatchbacks reached one of the lowest levels ever in December at 22.7 percent. The average transaction price for crossovers and SUVs last month stood $46,908, compared to just $42,460 for passenger cars. Higher demand for crossovers, SUVs and trucks will be welcome news for GMC, as it only sells these vehicle types.
New car prices are expected to remain elevated throughout 2022 as automakers continue to grapple with the effects of the chip shortage. GMC ATPs may also see an uptick this year due to the launch of the GMC Hummer EV Pickup Edition 1, which retails for $112,595.
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Comments
GM’S, ATP will get a big boost when all four of the large pick-ups assembly plants are fully change-over to the all-new editions with a new interior and that great-looking dash screen. These trucks will fetch a higher ATP over the old editions. I have been waiting for over a year to replace my pick-up, just does not make sense to get the same old edition, and you can bet there are many thousands that are waiting just like me.