The average transaction price of new vehicles has been consistently rising over the past year, with this trend continuing for the GM-owned Buick premium brand last month. Buick ATPs rose 2.1 percent year-over-year in June, increasing from $36,359 in June of last year to $37,109. The brand’s ATPs fell from May 2022, however, dropping 3.3 percent from $38,372.
Buick’s ATPs were lower than the average amount paid for a new non-luxury vehicle last month, which was $43,942, according to Kelley Blue Book. While Buick’s ATPs were lower than the industry average, the premium brand’s most popular products, like the Encore GX and Envision, have relatively low starting prices. The average luxury car buyer, meanwhile, paid $66,476, which was up $1,097 from May.
Full-size pickup trucks, electric vehicles and hybrid/alternative energy vehicles have so far seen the most elevated prices compared to last year, which are all segments that Buick does not compete in. A full-size truck sold for an average of $62,470 in June, up 9.1 percent year-over-year from $57,276. Electric vehicle ATPs were up 13.7 percent year-over-year to $66,997 and hybrid vehicle ATPs rose 27.6 percent to $39,040.
Just as in previous months, incentives for many new vehicles are hard to come by at the moment, further contributing to higher ATPs. Incentives dropped to a record low level in June, KBB reports, averaging just 2.3 percent of the average transaction price. Electric vehicles had the lowest incentives as a percentage of ATP at 0.4 percent, while entry-level luxury cars had the highest at 3.4 percent.
Buick’s sales fell 6.71 percent year-over-year in the second quarter of this year as the industry continued to grapple with supply chain challenges and inventory shortages. The best-selling Buick model last quarter was the Encore GX at 9,089 units sold, down 65.37 percent from 26,244 units in Q2 2021.