A new Buick vehicle sold for an average of $38,371 last month, up 9.4 percent from May 2022, when the premium crossover brand recorded ATPs of $35,083. While vehicle prices remain elevated, last month’s ATPs were down 1.5 percent from April of this year amid waning demand for new vehicles. Industry-wide ATPs for both mass-market and luxury brands in May 2022 stood at $47,148, up 13.5 percent ($5,613) from May 2021.
Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive, said the semiconductor chip shortage will lead to elevated new vehicle prices for the foreseeable future despite the recent slowdown in demand.
“Prices for both new and used vehicles are showing signs of stabilizing, and price growth will likely decline over the course of the summer as the anniversary of the ‘big squeeze’ in inventory passes,” she explained. “However, no one should expect price drops, as tight supplies in the new market will hold prices at an elevated level into 2023.”
Buick vehicles are still transacting for around one percent below MSRP, according to KBB, making it one of the only two brands that are, on average, selling for less than the sticker price. The other is another premium American brand: Lincoln.
Buick sales shrank 58.2 percent to 19,146 units in the first quarter of this year as sales of all four of its vehicles fell, which include the Buick Enclave, Encore, Encore GX and Envision. Lower sales, largely attributed to low inventory levels stemming from the chip shortage, have been partially offset by higher ATPs across much of the industry.