New Chevy vehicle average transaction prices (ATPs) fell 1.5 percent in January 2023 to $47,199 per vehicle relative to the brand’s overall $47,894 ATP in January 2022.
The ATP for a new Chevy vehicle declined even more month-over-month according to data reported by Kelley Blue Book and Cox Automotive, with average price showing a drop of 4.9 percent compared to December 2022’s $49,633 ATP.
Luxury and high-end models performed better than lower-end vehicles in the automotive market as a whole, KBB says. Chevrolet, a non-luxury brand, showed a similar pattern of declining ATPs as many other brands and manufacturers, including Ford, Mazda, Dodge, Honda, Kia, and others.
Aggregating Chevy, Buick, Cadillac and GMC price performance shows GM’s overall ATPs declining 0.7 percent year-over-year to $51,842 per vehicle in January 2023. The General’s January ATP fell 3.5 percent compared to December 2022’s $53,714 ATPs. Only its GMC brand showed rising ATP both month-over-month and year-over-year in January.
Viewed as a whole, the U.S. automotive industry recorded a 5.9 percent increase in January 2023 new-vehicle ATPs relative to the same month a year ago, reaching $49,388 per vehicle. ATPs fell 0.6 percent when measured against December 2022’s average prices.
The report highlights several reasons for the generally sharp ATP decline between December 2022 and January 2023 and the much smaller drop, or even gains, registered year-over-year. Non-luxury vehicles reached an all-time record in December 2022, leading to ATPs that couldn’t be sustained as incentives increased from their December lows moving into January.
Meanwhile, luxury vehicle sales soared as a percentage of overall sales, setting a new record with 19.6 percent share of sales in January 2023. “The mix of luxury vehicle sales last month – at a record high near 20 percent – helped keep the overall average price elevated,” Rebecca Rydzewski, Cox Automotive‘s research manager of economic and industry insights, remarked. She added that “transaction data from January indicates that overall prices are no longer increasing like they were a year ago.”
Increased supply of vehicles and rising fleet sales helped generate a year-over-year jump in industry sales volumes during January 2023, though volume is down 6 percent since December. New vehicle average transaction price is still higher than sticker price by about $310, but dropping prices overall are narrowing the gap.