The price of a new GMC vehicle continues to climb, with the brand’s average transaction price rising 3.7 percent last month.
New vehicle transaction prices fell in January as consumer spending cooled off slightly following the holiday season, and that trend continued in February. While GMC ATPs stood at $56,592 last month, which represented a 4 percent drop compared to January’s ATP of $58,899, the average price of a new GMC vehicle rose 3.7 percent compared to February 2021.
The COVID-19 pandemic and the semiconductor chip shortage contributed to elevated ATPs across the entire auto industry throughout 2021. While these events are beginning to have less of a negative impact on the auto industry, the unrest caused by the conflict between Russia and Ukraine has emerged as yet another factor that could spell trouble for consumers in the market for a new car, truck, crossover or SUV, explained Cox Automotive senior analyst Michelle Krebs.
“Consumers are paying near top dollar for new vehicles as prices remain high and incentives fall to a record low,” she explained. “With prices for oil and gas, along with commodities like metals used to build vehicles […], automakers may be compelled to try to offset their increasing costs by raising vehicle prices.”
Automakers are facing increased costs due to the additional strain put on the parts supply chain, Krebs said, which was already in a somewhat fragile state due to various pandemic-related setbacks.
“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.”
GMC added a hugely expensive vehicle to its portfolio late last year in the way of the 2022 GMC Hummer EV Pickup Edition 1. While only a small number of these vehicles have been delivered to date, its $110,295 MSRP is sure to contribute to higher ATPs for GMC this year.