A new GMC vehicle retailed for an average of $57,782 last month, down 0.4 percent year-over-year from $58,014. GMC ATPs also rose by 0.2 percent from $57,665, in April of this year. Higher ATPs at the mass-market brand are mainly being driven by high-priced products like the GMC Sierra 1500 and GMC Sierra HD full-size trucks, as well as the GMC Yukon and Yukon XL full-size SUVs. Sustained strong demand for AT4 and Denali trim level models is also helping to prop-up ATPs for the premium GMC brand.
Analysts for KBB’s sister brand Cox Automotive believe vehicle prices will remain high for the foreseeable future. On the bright side, the worst of the chip shortage is likely in the past and demand for new vehicles is slowing tapering off, making it unlikely that prices will continue to rise at the same rate they have been for the past twelve months or so.
“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,” explained Rebecca Rydzewski, research manager of economic and industry insights for KBB’s sister brand Cox Automotive. “However, no one should expect price drops, as tight supplies in the new market will hold prices at an elevated level into 2023.”
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. Rising ATPs are in part being driven by high demand for luxury vehicles, which now account for 17.3 percent market share. Luxury share in May 2021 was 15.9 percent, according to KBB, while pre-pandemic market share stood at 13.1 percent in May 2019. This is good news for GMC, which occupies a unique spot in the market with its premium truck, SUV and crossover models and its high-end Denali trim level.