The average transaction price of a new Buick vehicle last month was nearly 15 percent higher than in February of 2021, according to Kelley Blue Book.
A new Buick vehicle sold for an average of $39,418 in February, which was up 14.9 percent from $34,295 in February of 2021. While prices remain elevated from this time last year, the average transaction price of a new Buick vehicle actually fell 4.9 percent from January, when the automaker had ATPs of $41,442. The average transaction price for General Motors as a whole last month was $50,908, down 2.5 percent from $52,210 in January of this year and up 13.4 percent year-over-year from $44,903.
Production setbacks caused by the semiconductor chip shortage and the COVID-19 pandemic have led to reduced vehicle inventory across the globe. As a result, demand for new vehicles has spiked, allowing many automakers, including GM, to cut incentive spending. This has resulted in higher average transaction prices for new vehicles, with many consumers willing to pay MSRP or more to get the vehicle they want.
Unsurprisingly, GM’s three other brands also saw elevated year-over-year ATPs in February. Customers paid an average of $47,415 for a new Chevrolet vehicle in February 2022 – up 15 percent from $41,239 in February of 2021. The average price of a new GMC vehicle, meanwhile, rose 3.7 percent year-over-year. The Cadillac luxury brand saw the highest year-over-year increase in ATPs among GM’s brands, rising 15.7 percent year-over-year to $73,343.
While the worst of the COVID-19 pandemic has likely subsided and automakers have begun to observe an improvement in the global semiconductor chip supply, the ongoing conflict in Ukraine has emerged as yet another factor that could affect auto production output. This could be yet another contributing factor to high ATPs in the auto industry this year, explained Michelle Krebs, a senior analyst for KBB sister company Cox Automotive.
“The Ukraine situation is causing additional disruption to the automotive supply chain which makes the likelihood of growing inventory, which remains stuck at low levels, less of a sure thing,” Krebs said.
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Comments
What is it that these “transaction prices” supposed to be telling us?
Maybe that Americans have been paying over MSRP for minimal inventory built by an Asian focused company?
People are paying more and more for vehicles, yet the news is telling us that inflation is taking food off the table.