GM’s U.S. sales fell 15 percent in the second quarter as the auto industry continued to grapple with production setbacks and a lack of inventory. Falling new vehicle demand has not led to a drop in prices, however, with the average transaction price of a new Chevrolet vehicle climbing 1.3 percent year-over-year last month.
The average new Chevrolet model sold for $46,871 in June 2022, according to Kelley Blue Book, up 1.3 percent from $46,253 in June of last year. While prices remain elevated over last year, they showed some signs of cooling down in June, falling 0.9 percent from $47,299 in May.
Full-size pickup trucks, electric vehicles and hybrid/alternative energy vehicles have the most elevated prices compared to last year. A full-size truck sold for an average of $62,470 last month, 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. While truck ATPs have been steadily rising in value for more than a year now, demand for eco-friendly models like EVs and hybrids has risen sharply in recent months due to higher than usual prices at the pump.
Incentives continue to be almost non-existent for many new vehicles, also 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.
With production output remaining low, KBB’s experts say new vehicle buyers are currently facing an “over sticker,” market in which it’s difficult to avoid paying well above MSRP for a given vehicle. Rebecca Rydzewski, research manager of economic and industry insights for KBB sister brand Cox Automotive, said certain vehicle segments are seeing smaller demand and thus have more reasonable ATPs at the moment, such as compact cars and compact crossovers. For Chevrolet customers, this could mean finding a Chevy Spark sitting on a dealer lot, or opting for a small crossover like the Chevy Trax, Trailblazer or Equinox.