According to Cox Automotive and Kelley Blue Book, the average transaction price of a new Chevy vehicle stood at $49,010 in August, up 4.1 percent year-over year from $47,101 and up 2.2 percent from $47,962 in July 2022.
Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive, said the unprecedented rise in new vehicle ATPs can be attributed to the industry’s low production output at the moment, which has been driven by the chip shortage and other supply shortages. With fewer vehicles on lots, automakers are prioritizing nameplates with strong margins to offset dwindling sales figures.
“Prices are still high and climbing incrementally every month,” Rydzewski explained. “New-vehicle inventory levels have been rising through August, now reaching the highest level since June 2021. However, supply of popular segments – like subcompacts, hybrids and EVs – still remain very low. Automakers are focusing on building and selling high-margin vehicles. Essentially, the product mix is the primary factor keeping prices high.”
For Chevy, this likely means stocking higher-end Chevy Silverado, Tahoe and Suburban models, instead of low-cost vehicles such as the Chevy Equinox or Trax. Strong current demand for these pricier vehicle types also leaves automakers little reason to shift focus to budget-minded models.
High-performance cars saw the biggest year-over-year price increase in August, with transaction prices on these models jumping 19 percent to a staggering $118,332. Chevy has been able to capitalize on rising demand and ATPs for these performance models through the Chevy Corvette, and to a lesser extent the Chevy Camaro. Going forward, the arrival of the 2023 Corvette Z06 looks set to bolster GM’s rising ATPs even further, with prices starting at $106,395 for the Coupe variant in the entry-level 1LZ trim.