Buick Average Transaction Price Up 9.4 Percent In May 20224
The average transaction price of a new Buick vehicle rose 9.4 percent year-over-year in May 2022, according to market research firm Kelley Blue Book.
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.
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The US inflation rate in May of ‘22 was 8.6 percent so a 9.4 percent increase on a new Buick is pretty typical of what’s now happening across the nation on all goods. I wouldn’t consider it to represent high demand for Buick products but rather to the policies from the current administration in Washington that have created an inflationary climate.
GM has quite a few vehicles sitting on lots with many nameplates no longer experiencing shortages. This is not a good sign. Consumers are creatures of habit and when vehicles like Encore GX were missing other automakers picked up new customers who may never return to GM.
The General has great quality but many models are underpowered with blah design & no stand out features. This is dangerous when competing against brands like Kia, Hyandai, FCA NA and even Ford with new Bronco, Explorer and F-Series.
Hopefully the new EVs will be enough to turn the tide of a shrinking sales base. Electra & Wild Cat are beautiful.
Ummm GM does not have great quality.
You are a delusional fanboy if you seriously think GM has great quality.
Look at the 30 or so problems FORD has with several models…
Its Cables pulling apart… Engines failing, door handles falling off.
The Mustang Mach-E is currently on its 4th recall over crappy battery contactors… Now THAT is one area showing that this VERY EXPENSIVE CAR (for a Ford) is deliberately Sub-Standard.
Ford products in general are attractive – but I’m quite sure the only reliable ones are some of the simpler F-150’s or F-250’s.